Red Rose relegated from County Championship's top flight
The Red Rose men needed to reach a minimum of 300 and beat Hampshire, while elsewhere requiring Nottinghamshire to fall short 200 – which they did – and then lose to Somerset.
But after Fidel Edwards blasted through the tail with the second new ball they fell 27 runs short of the important 300 and their demotion to the second tier was confirmed.
Next season will therefore be the first time since 2015 that Lancashire will play their cricket in Division Two, on that occasion they only spent one year there before they were immediately promoted back to Division One.
They join Worcestershire, who were relegated last week against Essex, in dropping down this season.