The governing body made the decision at its extraordinary congress before this month's Gold Cup.
"Furthermore, based on a thorough assessment conducted by the Concacaf administration and Council, and in accordance with the Concacaf Statutes, the Member Associations reviewed the membership application submitted by the Greenlandic Football Association and unanimously rejected it," CONCACAF said in a news release.
The decision deals a significant blow to Greenland's attempts to play international soccer for the first time.
Greenland is a territory of Denmark with a population near 56,500. For comparison, the Faroe Islands are a Danish territory with a population just below 55,000, but they are a member of FIFA and UEFA, the latter governing European football.
Last year, Greenland applied for membership in CONCACAF, which governs North and Central America and the Caribbean.
Its nearest neighbour is Canada, and US President Donald Trump has expressed interest in taking control of the island.
Greenland's football team takes part in non-FIFA-sanctioned friendlies. According to Reuters, the island has just 18 football pitches.