Chris Williamson has lost his deposit in Derby North after gaining just 635 votes.
Tory Amanda Solloway took the seat with 21,259 votes and a majority of 2,540 while the Labour candidate got 18,719.
Since Mr Williamson won just 1.4% of the vote he has lost his deposit.
The former Labour MP was suspended over a row around the party's handling of of anti-Semitism complaints.
Labour's ruling NEC decided he could not stand for the party.
He was suspended in February after he claimed that Labour had been “too apologetic” in response to criticism of its handling of antisemitism allegations.
But he was readmitted to Labour and issued with a formal warning following a hearing of Labour's National Executive Committee antisemitism panel in June.
He was suspended again in July after a second panel reviewed the decision to reinstate him and found it “cannot safely stand” after outrage from MPs and Jewish groups.
Labour also imposed a separate suspension on September 3 over additional allegations of misconduct.
He then lost his High Court bid to be reinstated.
