Christiania spokesman Thomas Ertman said: "I believe that we will appeal the case."
According to the Copenhagen Post, the residents have permission to remain temporarily and will not be evicted immediately.
The neighbourhood was created in 1971 when hippies squatted at a derelict 18th-Century naval base on state-owned land.
With consent from civic authorities, the squatters were allowed to lead lives free from official interference, as long as they paid their taxes and utility bills.
But in 2004 police cracked down on drug dealers in the area, a move which prompted battles on the streets between riot police and residents.
In 2008, similar scenes erupted over the eviction of squatters.
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