Mr Lennon will now seek damages
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Celtic midfielder Neil Lennon is to pursue a libel action against the Daily Record newspaper in the English courts.
A judgement at the High Court in London found that Mr Lennon had a "substantial" reputation in England which he was entitled to defend there.
The player has taken exception to allegations made in articles published in the Daily Record in December 2002.
Mr Lennon denies being involved in an incident after a players' Christmas night out in Newcastle.
Three players were held overnight in police cells, although the case was later dropped.
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The defendant has failed to satisfy me that Scotland is the appropriate forum for the trial of the action
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Mr Lennon was also arrested and later released.
The Scottish Daily Record and Sunday Mail Ltd, the newspaper's publishers, had attempted to have the libel claim thrown out asserting that the English court was not the appropriate venue.
But Mr Justice Tugendhat ruled that Mr Lennon had a reputation as a player in England and that the alleged incident took place in England.
He continued: "The upshot is that I accept that the claimant has real
connections with England, as he does with Scotland, and that he has an
existing and substantial reputation in both jurisdictions.
'Important reputation'
"The claimant plainly has an important reputation to defend in England, and the English courts are the natural forum for achieving vindication of a reputation in
England.
"The defendant has failed to satisfy me that Scotland is the appropriate forum for the trial of the action."
Mr Lennon's lawyer, Julian Green, said his client would now sue the paper.
Mr Green said: "The position is that Neil will be pursuing his action in England, until the Daily Record see sense and either make us a proper offer or we win at trial.
"We will be seeking damages that are appropriate to this case."
The Daily Record management declined to comment.