Jersey Nomads' decision to withdraw from the Jersey Football Combination has been described as "very disappointing" by the league's president Tim Darwin.
In a letter to the league, Nomads officials revealed the club had folded.
They had struggled to raise a team at the end of last season and could not fulfil their match against Portuguese Club in April.
They lost their first match of the new Championship campaign 2-0 to St John.
They had been due to host First Tower United on Saturday.
"This is of course very disappointing for the league," said Darwin.
"I would list assisting them with their successful application to the league nine years ago as one of the high points of my time as president.
"It is however now done and we must concentrate on providing a structured league programme for the 18 clubs that remain.
"The securing of a headline sponsor is still the priority."
The Combination is without a main sponsor after the three-year deal with developer Dandara was not renewed.