El Jaish failed to reach the AFC Champions League group stage after suffering a 1-0 defeat at the hands of Naft Tehran.
Only around 6,000 spectators watched at Azadi Stadium in the Iranian capital as Amir Motahari headed in the winner for the domestic league leaders in the 50th minute.
It was Sabri Lamouchi’s first defeat as El Jaish coach since taking charge of the team last month following Nabil Maaloul’s departure.
The Iranian club will now join Group B alongside Pakhtakor (Uzbekistan), Al Shabab (Saudi Arabia) and Al Ain (UAE).