West Brom have had an application to introduce safe standing at The Hawthorns rejected by the government.
The Premier League side had offered to run a pilot scheme at The Hawthorns in the Smethwick End for both home and away fans during the 2018/19 campaign.
The Midlands club submitted a formal application in October 2017 to convert 3,600 seats into 'rail seats', which can be locked in an upright position allowing spectators to stand with rail support.
Minister for Sport Tracey Crouch has ruled out the idea and confirmed there are no plans to change the existing all-seater policy at UK football stadiums.
West Brom say their proposal was based on safety concerns, because of persistent standing.
The decision has been described as both "surprising" and "disappointing" by West Brom's director of operations Mark Miles, who has written back to the Sports Grounds Safety Authority urging a review.
"I find the decision from the Minister of Sport both surprising and disappointing," he said.
"It will certainly be disappointing for many, many supporters I have spoken to who were in favour of what we were proposing.
"It has also been a regular topic of discussion at our Albion Assembly meetings where the members support has been clear.
"The all-seater policy was developed over 25 years ago and football is a very different place now."
A spokesperson for the Department for Digital, Culture, Media and Sport said: "We have no plans to change our position and introduce standing accommodation at grounds in the top two divisions covered by the all-seater policy.
"Alongside the sports ground safety authority we will continue to monitor the issue of spectator accommodation and the use of safe standing where it is permitted."
Scottish Premiership side Celtic and Bundesliga club Hoffenheim both use the 'rail seat' system at their respective grounds.