Canada failed to qualify for the Rugby World Cup for the first time after being beaten 33-24 by Chile on Saturday, while Uruguay clinched their place after overturning a three-point first-leg deficit against the United States.
Canada won their first tie 22-21 a week ago but Saturday's drubbing in Valparaiso, Chile, kept the home team's dream alive to compete at the Rugby World Cup 2023.
"This is a hugely disappointing result - although we remain proud of the staff and players and the efforts they made over the past months, we all know the expectations for Canadian rugby are rightfully higher," Rugby Canada CEO Allen Vansen said in a written statement.
Chile will face the United States in a two-legged tie next year to decide which team will feature in France 2023.
Uruguay qualified after defeating the U.S. 34-15 on Saturday for a 50-34 aggregate score, reaching their fifth Rugby World Cup.