Clachnaharry House has had its licence to operate cancelled after the Care Inspectorate expressed significant concerns about the care offered.
The owner, RDS Healthcare, has been given the final decision after asking for a review of an earlier order.
NHS Highland suspended its admissions to the home in November 2012. The home's 18 residents have been moved to other accommodation.
Last month, the inspectorate ordered RDS Healthcare to shut Clachnaharry House.
The company sought a review of the watchdog's decision.
RDS Healthcare had plans to close the home temporarily at the end of December to carry out refurbishment work.
However, the Care Inspectorate wants more immediate action taken.
Care home inspectors have forced a care home in Inverness to close.