Despite being officially cleared of wrongdoing, she faced criticism for a tweet in which she called Rishi Sunak a "coconut".
In September, it became clear she was under investigation following the tweet.
has now learned that the disciplinary panel cleared Baroness Warsi of being "divisive" and "bringing the party into disrepute". However, despite this, the Conservative chief whip in the Lords, Baroness Susan Williams, has written to Lady Warsi - who was the UK's first Muslim cabinet member - stating that she is not welcome to return.
Lady Warsi stated she was being targeted for warning of increasing Islamophobia within the Conservative Party.
It comes at a time of controversy over demands for an investigation into abuse gangs, with the Tories facing criticism for exploiting the issue for political gain.
While criticising Muslims and "foreign cultures" which imported "medieval attitudes", he sparked outrage, prompting demands for his dismissal.
Lady Warsi was told: "While your membership of the Conservative Party remains unaffected, restoring party whip comes as a separate decision."
“It is a privilege, not a right, and following careful consideration, I regret to say that I am not convinced of your genuine intention to cease your public criticism of our party and its previous leaders. This behaviour is completely unacceptable and I will not tolerate it."
It is acknowledged that the Conservative leadership contests the assertions made by Lady Warsi that the party is being Islamophobic and “sliding into far-right extremism”.
However, Lady Warsi maintains she has not requested the whip to be reinstated, and has labelled the Conservatives as "playing games".
the party was trying to "vilify" her for questioning its "increasing levels of far-right extremism, racism and Islamophobia".
The move seems to be an attempt to reinforce the party's right-wing base, following concerns about voters and members switching to Nigel Farage's Reform UK. High-profile right-wing defectors include three former MPs, a significant donor, and the founder of the Conservative Home website.
Lady Warsi's appointment as party chair in 2010 by David Cameron was a reflection of the Conservative Party's efforts to modernise, but since then she has been relegated to the fringes as the Tories have moved towards a stronger stance on Brexit and tougher attitudes towards immigration.
The peer had proposed she might back Ms Badenoch in the previous year's leadership election, before deciding otherwise.
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