A number of improvements have been made to The Walks in recent years
King's Lynn will be demoted from Blue Square North at the end of the season because The Walks Stadium does not meet Football Conference standards.
The club and stadium owners King's Lynn Borough Council have committed to completing improvements by next season.
Linnets chairman Ken Bobbins said he was left perplexed by the decision.
"We've been to grounds that are virtually derelict, and they seem to get ground grading certificates, it's bizarre," he told BBC Radio Norfolk.
"We knew there was work to be done on the ground, we've been working on the finances and how that can be achieved all season," he continued.
"It's particularly galling because the council have given the Conference an unconditional undertaking that they will make good all the required alterations, and they will be completed by the start of the season," he said.
The club have been given 14 days to appeal against the league's ruling, but Bobbins is not confident of success.
"We certainly haven't given up and thrown the towel in, we're meeting with the council next week, we're putting an appeal together," he said.
"The fact that they are demoting us, when they have this unconditional letter from the council, I find quite bizarre."
The Linnets won promotion to Blue Square North by winning the Southern League last season and, despite a poor run of results in recent weeks, have accumulated enough points to avoid finishing in the bottom three.
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