The man alleged to be the army spy known as "Stakeknife" has lost a judicial review he said would prove his innocence.
Mr Freddie Scappaticci (59), from west Belfast, had applied to the High Court in Belfast for a judicial review of Security Minister Ms Jane Kennedy's refusal to confirm that he was not a British agent.
Mr Scappaticci was named by the media as a top-ranking military spy within the IRA in May of this year, a claim he has consistently denied.
Mr Scappaticci's lawyers claim his life is being put under threat by the Security Minister's refusal to confirm that he is telling the truth. They said tonight they are considering appealing today's ruling.
Mr Michael Lavery QC, for Mr Scappaticci, had described as "quite extraordinary" the British government's contention that the threat to Mr Scappaticci's life would not be reduced even if they did say he was not one of their agents.
Sir Robert Carswell, Lord Chief Justice in Northern Ireland, said in hisruling he had taken into consideration a number of matters including the threatto Mr Scappaticci's life.
But he ruled that if the British government was to depart from its policy of neitherconfirming nor denying spying allegations it could put the lives of agents atrisk.