A plea from parents and members of the team to the sporting body to consider their superior performance in the final round, rather than the qualifying round, was rejected.
The team had failed to make the self-imposed qualifying mark by just 0.273 in the group all-round competition at the gymnastics test event earlier this week, the performance marked down by a knot in a ribbon.
In a statement, the board of British Gymnastics said it will refuse to nominate the team to the British Olympic Association for selection.
The standard was agreed last May so that the sport could prove it would be able to perform credibly at the Olympics. To date this is the first British sport not to have made the agreed qualifying marks.
"In accordance with the selection process approved by the BOA (which was agreed and acknowledged by all competing group members), British Gymnastics wishes to confirm that in line with this policy it will not be nominating a rhythmic gymnastics group for inclusion into Team GB for the London 2012 Olympic Games," the statement said.
But the board said it would nominate an individual rhythmic gymnast for Olympic selection, likely to be Francesca Jones of Wales.
The officials said to fall short of the qualifying standard was an enormous disappointment for everyone but the team performance will be a catalyst for ongoing development of the discipline within the country.
