Ms Shoesmith, 55, was dismissed without compensation from her senior position at Haringey Council in north London last month after a damning report into her department's failings.
She launched an attempt to overturn the decision to sack her but a panel of councillors rejected her appeal.
Children's Secretary Ed Balls sent inspectors into Haringey Council after the trial of those responsible for 17-month-old Baby P's death.
The inspectors identified a string of "serious concerns" about the local authority's child protection services, which they described as "inadequate".
Mr Balls removed Ms Shoesmith from her post on December 1 but she remained suspended on full pay until Haringey councillors decided to dismiss her a week later.
Ms Shoesmith's appeal hearing before a panel of three Haringey councillors began on Wednesday last week and lasted three days.
A Haringey Council spokesman said: "A panel of councillors has rejected an appeal by Sharon Shoesmith against her dismissal on December 8 2008.
"The decision was taken today by a different panel of councillors from the ones who made the original decision.
"Ms Shoesmith will not be returning to work in Haringey. She will not receive any compensation package. She will not receive any payment in lieu of notice."
Employment law experts say Ms Shoesmith could be in line for a payout of up to £173,000 if she can prove that the council was wrong to sack her.
She may now make claims against Haringey for breach of contract and unfair dismissal.
Baby P, who cannot be named for legal reasons, died in a blood-splattered cot in August 2007.
He had suffered more than 50 injuries at the hands of his mother, her boyfriend and their lodger despite being on the child protection register and receiving 60 contacts with the authorities over eight months.
The trio will be sentenced at the Old Bailey in the spring.
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