The Victorian Court of Appeal has rejected an appeal from objectors to the mosque to block its development.
Critics of the planned mosque, Julie Hoskin and Monika Evers, launched the latest appeal after a failed attempt in the Victorian Civil and Administrative Tribunal (VCAT) in August.
The justices ruled the grounds of appeal - that VCAT erred in its interpretation of its duties - are not reasonably arguable.
The loss could be the final legal avenue for objectors to the mosque, with court costs estimated to be more than $200,000.
The development could signal the end to a protracted legal fight over the mosque's development, which was first approved by the City of Greater Bendigo in June 2014.
The decision to build the place of worship saw rival groups hold protests in Bendigo in October, with several people detained by police.
