Telford will drop out of the Conference and go into liquidation after efforts to bring in an investor failed.
Telford finished 12th in the Conference last season
Rod Butcher, a partner in Birmingham-based firm Moore Stephens Corporate Recovery, revealed it was the only option left to the Bucks.
"We have advised the directors that the only choice now is to cease trading and go into liquidation," said Butcher.
"At the close of the season the club had no income and could not meet debts to the players and other creditors."
He added: "We will now work with the directors so that we can achieve the best possible settlement for the club's creditors.
"We are also still looking for a buyer or investor who could resurrect the club."
The club, which was founded in 1872, was thrown into crisis in March, when former chairman Andrew Shaw's Miras Contracts business collapsed.
A statement from Telford United Supporters Limited admitted the news was a massive blow but said football in the town would continue.
"We are deeply saddened at the outcome and we have been shocked by the apparent financial mis-management of the club prior to 25th March 2004," it read.
"The wheels have been set in motion with regard to the formation of a new club which should be confirmed within the next 24 hours.
"This will hopefully provide the vehicle for football in Telford to re-enter into non-league football, the level of which is as yet unknown."