Colchester United’s will be playing their football in Sky Bet League 2 in 2016/17 following a 3-0 defeat to Burton Albion.
In a statement, club chairman Robbie Cowling said: "I am very confident that we are building a great club with a wonderful future but I am fully aware that I need to raise my own game if I am to fulfill my objectives for the club.
"Now that our fate has been determined, we can start planning for next season.
"There are financial implications but despite those, the club is well placed to do more than just survive in League 2.
"We won't have the biggest playing budget and we won't have any easy fixtures but, if we hold our nerve and stick to our philosophies, the club is going to take off some time soon."