Palermo finished third in Serie B and were set to take its place in the promotion play-offs but has been moved to the bottom of the table by a decision from the FIGC's national court.
It said the Sicilian club was sanctioned "for a series of management irregularities by some former directors".
Palermo was relegated from Serie A in 2016-2017 and failed to gain promotion through the play-offs after finishing fourth in its first season in the second tier.
The club, expected to appeal against the punishment, has seen several takeover attempts fall through this year.
Perugia will take Palermo's place in the promotion play-offs, while Venezia is now guaranteed to stay in the second tier. The relegation play-out will be contested by Foggia and Salernitana.