The Trump administration’s request to reinstate a travel ban blocked by a federal judge on February 3 has been rejected by the US federal appeals court.
The late night ruling means the travel ban will remain suspended until the full case has been heard.
The court gave the White House and the states challenging it a deadline of February 6 to present more arguments.
Two states argued that the travel ban, affecting people from seven mainly-Muslim countries, was unconstitutional.
In its appeal, the DoJ said Judge James Robart had overreached by “second guessing” the president on a national security matter.
The DoJ also argued that only the president could decide who can enter or stay in the US.
In February 3 case, the DoJ had argued that states did not have the authority to challenge a presidential executive order.
Lawyers for the states of Washington and Minnesota had argued that the ban was unconstitutional because it denied people with valid entry documents the right to travel without due process.
The executive order also violated freedom of religion rights by appearing to target Muslims, they said.
Iraq, one of the countries named in the ban, has praised the revocation of the travel ban as a “move in the right direction”, Reuters reported.
Iran has also responded to Judge James Robart’s ruling by saying it would allow a US wrestling team to compete in a World Cup event it is hosting later this month.
The American wrestlers were initially denied visas after Iran said it would ban US citizens in retaliation for President Trump’s order.
However, Donald Trump has called Judge James Robart’s ruling “ridiculous”, described him as a “so-called judge” and vowed to restore the ban.
Judge James Robart has served on the federal bench since 2004 after nomination by President George W. Bush.
February 3 ruling has also seen visa holders from the affected nations scramble to get flights to the US, fearing they have a slim window to enter.
The State Department has been reversing visa cancellations and US homeland security employees have been told by their department to comply with the ruling.
Customs officials told airlines that they could resume boarding banned travelers. Qatar Airways, Air France, Etihad Airways, Lufthansa and others said they would do so.
The ban caused confusion at US and foreign airports when it came into force.
It envisages a 90-day visa suspension for anyone arriving from Iraq, Syria, Iran, Libya, Somalia, Sudan and Yemen.
The executive order also suspends the US Refugee Admissions Program for 120 days, and places an indefinite ban on Syrian refugees.