Egypt's Supreme Administrative Court dismissed the appeal lodged by the Egyptian government headed by President Mohammed Mursi.
The ruling had been postponed three times.
On March 6, the Supreme Administrative Court overturned a presidential decree calling for elections to begin on April 22, questioning the constitutionality of the electoral law that would govern the elections, Al Ahram online reported.
A week later, the Egyptian State Lawsuit Authority (ESLA) appealed the ruling suspending the elections.
ESLA appealed the ruling on behalf of the Egyptian president, the justice minister and the head of the Shura Council, Egypt's upper house of parliament, which temporarily holds legislative powers.
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An Administrative Court ruling said the Shura Council should have referred the electoral law back to the HCC before ratifying it, so as to ensure the amendments were constitutional.
The president's Muslim Brotherhood party was pushing to hold elections for the law-making body, saying it is essential for stability and a transition to democracy.
The opposition had expressed concerns that the election law allow unfair advantage to the Parliament dominated by the Brotherhood.