Dynamo Dresden will be forbidden entry into next season's DFB-Pokal due to the crowd violence which marred their defeat at Borussia Dortmund on October 25.
The German Football Association (DFB) confirmed the sanction at a meeting after Dresden's appeal against the initial decision to exclude them from the competition was rejected.
The DFB are hoping the move will send out a signal to clubs that misbehaving fans will not be tolerated.
''Football is currently one of the biggest stages of our society and many people are looking for a place or a niche on this stage, and that also means violent people,'' said Hans E Lorenz, the judge of the DFB's disciplinary panel.
''Never has violence in our stadia been so big as this year. Nobody has been killed in our stadia, but if things are to go on like this, it would only be a matter of time.''
The game at Dortmund's Westfalenstadion was disrupted several times as fans in the section reserved for visiting fans lit flares and fireworks. Seventeen people were injured and 15 arrests were made.
Dortmund have been fined €8,000 for failing to adequately deal with the fans and confiscate the pyrotechnic material outside the ground.