With this ruling, the Russian track and field team comprising 67 athletes will miss out on Rio Olympics which start on 5 August.
The IAAF welcomed the ruling and stated that it has created a level playing field for athletes.
As expected, Russia slammed the ruling with the country’s Sports Minister Vitaly Mutko terming it a "subjective and politicised" decision with no legal basis.
The ruling will see Russian stars such as pole vault world-record-holder and two-time Olympic gold medallist Yelena Isinbayeva and hurdler Sergey Shubenkov miss out on Rio.
'Funeral for athletics'
Isinbayeva said the ruling would deal a mortal blow to international athletics. She said the decision was a political order and a funeral for athletics.
The IAAF had suspended Russia in November following an inquiry which first mentioned “state-sponsored” doping.
The World Anti-Doping Agency (Wada) has called for Russia to be completely banned from the Rio Games.
A powerhouse at the Olympics, Russia was the second most successful athletics nation at the London Games, behind the US.