At the Court of Appeal, lawyers for Home Secretary Theresa May had challenged a ruling made last November by immigration judges on the grounds that Qatada was a "truly dangerous" individual who had escaped deportation through "errors of law".
But three appeal judges said the Special Immigration Appeals Commission (Siac) was entitled to conclude that disputed statements will be used against Qatada.
Qatada, who featured in hate sermons found on videos in the flat of one of the 9/11 bombers, has ultimately thwarted every attempt by the Government to put him on a plane.A resident in the UK since September 1993, he was returned to jail last month after he was arrested for alleged bail breaches.
A hearing over whether he should be granted bail again was due to be held last month, but was delayed.
Police searched Qatada's family home in London before he was held and have since said that he is being investigated over extremist material.