David Beckham and his wife Victoria intend to take legal action after failing to stop the News of the World printing articles about their marriage.
The Beckhams sought an injunction against the News of the World
Late editions of the paper carried allegations by their former nanny.
The couple sought an injunction against the paper in the High Court on Saturday night, claiming Abbie Gibson was in breach of a confidentiality contract.
But the paper says the judge ruled in its favour on the grounds that the story was in the public interest.
The decision was taken after a 90-minute hearing.
It is alleged that Ms Gibson witnessed a series of rows between the celebrity couple.
A spokesman for the Beckhams said: "We are consulting our lawyers with a view to taking legal action."
The couple's lawyers had argued that the nanny's contract had included a promise not to speak about the couple's private lives.
The News of the World has printed eight pages of allegations about the couple's family life based on claims made by the 27 year-old nanny, who said she kept a diary during her time with the Beckhams.
News of the World journalist Phil Taylor told BBC Radio 5 Live: "The industry recognises that when the News of the World does print a story we go to incredible lengths to prove that every single fact we publish is correct."
Mr Taylor, who was one of the reporters who covered the story for the paper, admitted that the Beckhams were not contacted for a response to the claims amid fears that they would seek an injunction.
But he said the paper would now be happy to speak to the couple.
Asked why allegations about the Beckhams' marriage were in the public interest the reporter went on: "The Beckhams, Britain's most famous celebrity couple, have made millions portraying their relationship as a perfect marriage.
"Abbie lived in their house for two years and she heard their blazing rows and in fact it's got so bad that at Christmas it reached breaking point and she actually heard David say to her that he wanted to split."
Mr Taylor admitted that the nanny had been paid for the story but refused to disclose the sum involved.