The Central Election Committee rejected Strong Israel's appeal to overturn the ban against the party's advertisements on Tuesday.
The committee ruled earlier this month that Strong Israel's ads, which say the word "loyalty" in Arabic, followed by "without responsibilities, there are no rights," are racist.
The appeal was rejected with eight in favor and 11 opposed.
Strong Israel leader Arieh Eldad said that "demanding loyalty from all Israeli citizens, whether they are Jewish or Arab, is not racist, it is legitimate, and without it Israel cannot exist."
The party is considering an appeal to the High Court of Justice.
Also on Tuesday, the committee repealed its decision to not allow the anti-corruption Eretz Hadasha party to add "the front to take down the rule of wealth" to its name.