Fifa has rejected a British Olympic Association appeal to allow the England Women's football side to compete at the 2008 Olympics as part of Team GB.
Powell is in China masterminding England's World Cup campaign
England will take part in September's World Cup, from which three of the top finishing five European nations will automatically book a spot in Beijing.
But England cannot as they do not have their own National Olympic Committee.
England coach Hope Powell told the Sunday Telegraph that she felt Fifa's decision was "very disappointing."
She added: "It would have given the players so much experience and exposure.
Former captain Faye White, back in the national squad after injury, echoed Powell's sentiments.
"The men's game might not need the Olympics but we need it because of the exposure it would give us.
"It's hard to take when there's football in the Olympics and we don't have the right to play in it."