The Election Commission on Monday afternoon declared that the eldest daughter of the late King Bhumibol can not compete in the upcoming election as a candidate for prime minister.
Thailand's king has crushed the plans of his older sister to become a candidate for the country's prime minister.
Since Thaksin was ousted by a military coup in 2006, Thailand's establishment has had little success in trying to weaken his political machine with constitutional amendments, court rulings and changes to the electoral system.
But in a statement read out on all television stations within hours of her candidacy, King Vajiralongkorn said it was "inappropriate" for members of the royal family to enter politics.
The princess had accepted the nomination of the Thai Raksa Chart party, a populist movement drawn from supporters of ousted ex-premier Thaksin Shinawatra, who has been at the center of more than a decade of turmoil in Thai politics.
Members of the royal family should be "above politics" and therefore can not "hold any political office", the commission said in a statement, echoing the wording of a public statement from the king on Friday.
Ubolratana was stripped of her royal title when she married a United States national in 1972.
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Shortly after the king's statement she posted again without addressing the issue directly, simply thanking Thais for their support and saying that she wanted Thailand to "move forward and become admired and accepted by the global community".
Fears of the third military coup since 2006 - just weeks from a planned election on March 24 - were reignited after tanks appeared and army chiefs were dispatched to Munich, in Germany, where the king resides.
Bloomberg observed that "the move by King Maha Vajiralongkorn's sister shocked a nation where top royals are officially treated with semi-divine status and protected by strict lèse-majesté laws that shield them from criticism".
The commission is also considering a complaint seeking to ban the Thai Raksa Chart party but did not mention the petition on Monday.
The junta leader, Prayuth Chan-ocha, is also contesting the race for prime minister as the candidate of a pro-military party. He said that the princess' name could be used for election campaigning, which breaches Section 17 of the election law barring candidates and political parties from using the monarchy for that.
On Saturday, the Thai Raksa Chart party swore loyalty to the king, saying in a statement that it "complies with the royal command".
Thaksin has lived in self-imposed exile in England since he was deposed. The takeover resulted in the installation of a junta intent on eradicating the influence of former Prime Minister Thaksin Shinawatra, whose allies have won every national election since 2001.