The Penrith Emus have lost an appeal to be reinstated into the Shute Shield, after a vote on Tuesday night.

The Sydney Rugby Union made the decision to cut the Emus from the competition last month, saying the club had failed to meet a series of criteria.

President Jim Hook was defiant at the time that the club had met the criteria set down for it, fuming at the decision.

The Emus delivered their appeal on Tuesday night, with all the Sydney Rugby Union presidents voting against reinstating the team to the competition.

Penrith hasn't given up the fight just yet, taking legal advice about its possible next steps.

The SRU released a statement on Tuesday night, confirming the vote and reaffirming their commitment to a strategy for Western Sydney.

Already, a Western Sydney Barbarians colts side has been established to compete in the grade competition, among a number of other plans.

"The Sydney Rugby Union (SRU) tonight heard the appeal from Penrith Rugby Union Club regarding their removal from Sydney Premiership competition," it read.

"In accordance with the SRU appeal process all Club Presidents voted on the matter and Penrith were unsuccessful in being reinstated.

"The SRU together with New South Wales Rugby Union (NSWRU) continues to work on a broader rugby plan for the Western Sydney region and steps are already underway to reinvigorate the game in the area."

All teams scheduled to play Penrith will have a bye, and receive a +28 points difference for the matches.