The 27-year-old three-time world and 2006 Olympic champion had vowed to try and win back his title in 2014 after taking silver behind American Evan Lysacek in Vancouver this year.
But under international rules, Plushenko becomes ineligible for ISU approved competition after he had his eligibility withdrawn by the world governing body for taking part in the Kings on Ice show earlier this year rather after withdrawing from the World Championships in Turin.
"Based on evidence presented, the Council has concluded that Mr. Evgeny Plushenko breached the ISU eligibility rule 102, paragraph 2, i) of the ISU General Regulations and as a consequence has become ineligible under paragraph 7 a) of that rule," the ISU said in a statement.
"The evidence has proved to the satisfaction of the Council that Mr. E. Plushenko, a skater and member of the Figure Skating Federation of Russia (FSFR), skated in exhibitions held in March and April 2010, in Russia and other countries, without the express prior authorization of the FSFR.
"Such activity is a breach of the ISU eligibility rules and results in the loss of eligibility."
Plushenko has 21 days to appeal to the Court of Arbitration for Sport (CAS) in Lausanne and win if he hopes to compete at an ISU event in the future.
A similar situation occurred earlier this year when Canadian Joannie Rochette, who won an Olympic bronze days after her mother died, performed a tribute to her mother on the show Thin Ice - but she obtained an exemption allowing her to keep her eligible status.
February 2010: Plushenko signs up to be face of Sochi 2014
February 2010: Plushenko promises to carry on until Sochi 2014
February 2010: Putin tells Plushenko that he is worth gold as Russian anger grows