Amy Houston was found under the wheels of Ibrahim's car
An asylum seeker who fatally struck a girl with his car then fled the scene has won the right to stay in the UK.
Aso Mohammed Ibrahim, 31, of Blackburn, hit Amy Houston, 12, in 2003. He was later jailed for four months.
He faced deportation but successfully invoked human rights legislation granting him the right to a "family life" in the UK.
Justice Secretary and Blackburn MP Jack Straw said he will be seeking to appeal against the decision.
The UK Border Agency is also considering an appeal.
Amy Houston was found trapped under the wheels of Ibrahim's Rover in Newfield Road, Blackburn, in November 2003. She died later in hospital.
Ibrahim was jailed for four months by Blackburn magistrates for driving while disqualified and failing to stop after an accident.
The father-of-two was due to be deported after he was taken into the custody of the UK Border Agency.
But the Iraqi Kurd claimed it was too dangerous to return to his homeland and won the right to stay in Britain after a lengthy series of appeals at the Manchester Asylum and Immigration Tribunal.
Ibrahim had failed in all of his previous attempts to gain asylum
Jo Liddy, regional director of the UK Border Agency in the North West, said: "We are extremely disappointed at the court's decision to allow Mr Ibrahim's appeal against removal from the UK.
"We have made it clear that we will prioritise the removal of those foreign nationals who present the most risk of harm to the public."
An agency spokesman added it was likely it would consider an appeal against the decision.
Blackburn MP Mr Straw said he found the judge's decision "very disappointing".
He said: "I will be speaking to the home secretary to see if there's any way we can appeal against this decision, and I will also be talking to the family.
"They have been through an awful time."