The former manager of Manchester City had taken his case to the House of Lords following a court ruling in favour of Manchester City earlier this year.
Joe Royle was dismissed from his job as manager after City were relegated from the Premiership at the end of the 2000/2001 season.
The former Blues manager claimed he was entitled to compensation as a Premiership manager and took the club to court over his claim.
A High Court Judge ruled that he should have been given a Premiership-style "golden handshake" when he was axed by City.
Under the ruling the judge awarded Mr Royle compensation of £422,819.08 but City appealed and the ruling was overturned in favour of Manchester City with the club being awarded costs.
It is hoped that this latest ruling will finally bring to an end the long running dispute.