Barry George, who spent eight years in prison after being wrongly convicted of the murder of TV presenter Jill Dando, has lost his legal battle for compensation as a victim of a "'miscarriage of justice".
The latest legal move at the Court of Appeal followed the dismissal of his claim by two High Court judges in January.
Lord Justice Beatson and Mr Justice Irwin had rejected his claim that the Justice Secretary unfairly and unlawfully decided he was "not innocent enough to be compensated".
They ruled that the Secretary of State was "entirely justified in the conclusion he reached".
Lord Justice Richards, sitting at the Court of Appeal in London, today rejected an application by Mr George for permission to challenge the January decision.
He announced that the 53-year-old - who was present in court for the ruling - had "no realistic prospects" of success on appeal.
Mr George went to the High Court seeking a reconsideration of his case which could have opened the way for him to claim an award of up to £500,000 for lost earnings and wrongful imprisonment.
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Police and emergency services are attending the scene.
Rebel-held east remains at risk while the pumping station supplying the western part of the city is once again in operation.