The 28-year-old has been left feeling "bitterly disappointed" after the Court of Arbitration for Sport decided against quashing the ban, which was issued after Butt was found guilty of conspiracy to cheat and collect corrupt payments in the sport in 2011.
A statement from Butt's legal team said: "[Butt is] bitterly disappointed with the decision of the court. He has been in a very dark place over the last few years and he was hoping that he would be successful in this appeal.
"We will not be giving up, in the coming days and weeks we will be exploring every other available avenue."
Butt was released from prison last June after serving seven months following an initial two-and-half-year sentence.