Lozano was given a straight red card in the 39th minute of PSV’s 2-0 loss away to Heerenveen after appearing to slip on the turf and collide with defender Denzel Dumfries.
On Monday, the Dutch FA imposed a three-match suspension on Lozano, one of which was suspended following the red card.
However, PSV launched an appeal against the decision but it has been turned down and the winger will now miss Sunday’s home game against reigning Eredivisie champions Feyenoord and the KNVB Beker tie at SDC Putten.
Boss Phillip Cocu says he has "huge doubts" about the decision to award the red card to the Mexican, who signed from Pachuca for 8 million euros in the summer.
"He just slipped on the wet turf and should not have been sent off," Cocu said.