Morgan was given until Thursday, 4 January at 6:00pm in order to appeal against the decision but this has been overturned by the Football Association and will be banned for three matches.
Sheffield United Football Club Chairman, Terry Robinson, told sufc.co.uk: "Due to the rules we were not able to be present at the hearing. We submitted a statement from Chris and the club on what we thought was a questionable decision by the Compliance Unit.
"With separate incidents going unpunished we thought there was enough evidence to cast doubt about the supposed intent. Unfortunately the commission decided otherwise and subsequently we cannot appeal against the decision.
"Chris Morgan has recently regained his form and position in the team and this decision could prove serious to our Premiership survival if the manager cannot re-organise or bring in sufficient cover."