Waterford say there was "no give" from the government regarding their participation in the UEFA Youth League.
The south-east club were forced to withdraw from the competition because of the rules regarding team training under level-5 restrictions.
Waterford were due to be away to the Swedish side Hammarby on Tuesday, March 2.
However, the club have been unable to train for the round-of-64 tie and would not be permitted to travel to Sweden.
"It’s a government ruling," Waterford's academy head coach Mike Geoghegan told WLR FM, "The sporting organisations have to row in and work with the government on this one.”
“It's unprecedented.”
“There’ no point in us throwing our toys out of the pram and screaming about unfairness or that we should be classified as elite.”
“The rules are quite clear from the government. The FAI has to work within those guidelines and we have to work within the FAI guidelines.”
“We’re disappointed, but we're not blaming anyone for this. This is just unfortunate circumstances."
The FAI and Waterford worked with the relevant authorities to find a solution but unfortunately, the decision has been taken to withdraw from the competition.
With level-5 restrictions in place until at least March 5, efforts had been made to get UEFA to move the tie back by a week.
However, European football's governing body could only offer a one-week extension.
Geoghegan added, "They’ve been making representations to the government to see could our U19’s be given an exception to come back and train so we could pull a squad together and have them prepared for a European tie”.
“There’s been no give, but in fairness its been a difficult time for government and for sporting associations”
“Up to this week, those negotiations have been going on, but we’ve been told that under no circumstances can we resume training."
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