Alan Power was accused of becoming aroused at work
A police employee who claimed he was sacked because he thought psychics could solve crimes was not a victim of discrimination, a tribunal ruled.
Alan Power, 62, from Merseyside, had accused Greater Manchester Police (GMP) of forcing him out of his job in 2008 because of his spiritual beliefs.
Despite winning a ruling that his views should be seen as a faith, the tribunal said GMP did not dismiss him unfairly.
"We welcome all races and religions," a police spokesman said.
During the tribunal in Manchester it was claimed a number of reasons were behind him being sacked.
The tribunal heard the police law trainer, described as a "ghostbuster", was playing the part of an arrested shoplifter during a session at Bruche police training college, near Warrington, in 2004.
But he became visibly aroused during the frisking process.
A sergeant from Merseyside Police who witnessed the scene vowed never to use him again, and Cheshire Constabulary made the same decision because of his "inappropriate behaviour", the tribunal heard.
The information only came to light in October 2008 after Mr Power, who denied the allegations, secured a job as a specialist trainer and a co-ordinator with GMP.
He was sacked three weeks later, with the force citing his "current work in the psychic field" as a reason.
It was also alleged Mr Power, who claimed to have seen ghosts since childhood, had distributed inappropriate research materials to Merseyside officers featuring the World Trade Center attacks.
Assistant Chief Officer Julia Rogers said: "GMP notes and fully supports the judge's ruling.
"This matter has never been about Mr Power's beliefs and we vehemently deny any claim he was discriminated against on those or any other grounds.
"GMP welcomes all races and religions and employs and actively recruits people with diverse beliefs and from many different ethnic backgrounds."
In an earlier hearing, the employment tribunal said his psychic beliefs fell under the Employment Equality (Religion or Belief) Regulations 2003.
Greater Manchester Police Authority had claimed his beliefs did not amount to religious views.