The Cairo Appeals Court has rejected a lawsuit filed by Parliament Speaker Saad El-Katatni on the legality of the membership of current parliamentarians.
The verdict almost certainly kills any hope for reviving the current parliament.
Last week, Egypt's parliament met for the first time after the High Consitutional Court (HCC) ruled it unconstitutional over a month ago.
Egypt's new president, Mohamed Morsi, issued a presidential decree last week reinstating parliament, despite the ruling by the HCC, Egypt's highest court.
The move opened a front of conflict between Egypt's judiciary and the Muslim Brotherhood, who dominate the parliament, and threw the country into legal limbo.
Cairo's Administrative Court is expected to look into appeals supporting and rejecting Morsi's decree to recall parliament on Tuesday 17 July.