Le Pen was booted out of the party he founded last year for reiterating his view that the Nazi gas chambers were a mere "detail" of history and defending France's collaborationist wartime Vichy regime.
FN leader Marine Le Pen, who has her eye on the French presidency in next year's elections, disavowed her 88-year-old father, accusing him of "political suicide".
The court in the western Paris suburb of Nanterre upheld the FN's decision to strip him of his membership.
The FN was also ordered to pay the party's founder 15,000 euros (USD 16,000) in damages for preventing him from carrying out his functions of honorary president over the past year.
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Jean-Marie Le Pen's lawyer Frederic Joachim hailed the ruling as "a victory" for his client.
Le Pen senior deeply resented being shown the door by Marine, who has been on a drive to purge the party of its anti-Semitic and racist image since taking over the reins in 2011.
But he took heart from Donald Trump's election in the US, seeing it as a sign Marine Le Pen could be France's next president.
"Today, the United States, tomorrow France. Bravo America!" he tweeted a day after the US vote.