The Rugby Football Union turned down the application from Worcester.
The RFU has given the go-ahead for the club to return in 24 years' time if they follow a number of conditions.
The sides went into administration and were removed from the league.
The RFU board was looking at applications from people who wanted to take over the clubs.
The subject of a bid from a group led by a former Warriors chief executive is the debt ridden city of Worcester.
Atlas accused the governing body of trying to impose overly operational conditions on the group as they negotiate a takeover with administrators.
The RFU put forward a number of conditions for prospective buyers to meet, including commitments not to dispose of land around Sixways stadium.
The RFU board was unable to approve the application due to the fact that the bidders weren't prepared to meet the conditions.
The administrator and the RFU will work together to get alternative bids for professional rugby at Sixways.
Their decision could lead to the renewal of a bid by a group led by former Warriors director of rugby Steve Diamond and a previously unnamed ally.
"I can confirm that Adam Hewitt and I are fully committed to bringing Worcester Warriors back to the Premiership. We have the plan and the funding. Give us the opportunity. We will give you the rugby. Bring it on," Diamond posted on Twitter on Thursday.
The best interests of the club were the priority according to Bill Sweeney, the RFU chief executive.
He said that they were prepared to extend the deadlines if an alternative bidder could be found who could continue rugby in the city.
Atlas said in a statement that they would look to conclude a deal without the approval of the RFU if they did not change their stance.
At the end of October, an offer from a group of people including members of the club's legends group was accepted, despite the fact that the club had debts of nearly a billion dollars.
The women's team is a separate club and will not be included in their bid.
Over the next few weeks, the RFU will work with the bidders to meet a number of specific conditions.
"These include a range of financial commitments to ensure that the club remains funded, the lodging of a significant bond, the regular provision of financial and other information, swift payment of rugby creditor, and corporate governance requirements including relating to the club's board of directors and risk management."
Due diligence was conducted by the RFU's financial viability group.
Members of the RFU board, council and executive staff, as well as representatives from the Championship and National League Rugby, are included.
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