An injunction barring a newspaper from naming a celebrity who engaged in "extramarital activities" can be lifted, judges have said - but he still cannot be named pending a possible appeal.
Editors of The Sun on Sunday wanted to publish an account of the man's ''sexual exploits'' with others.
The man took legal action, and earlier this year two Court of Appeal judges imposed an injunction preventing the newspaper from identifying the man.
Three appeal court judges have now said the injunction can be lifted following a challenge by lawyers for the newspaper.
But they did not name the man in their ruling pending further legal action by his lawyers.
Lawyers for the celebrity - PJS - are asking appeal judges to give them permission to take the case to the Supreme Court.
And the appeal judges said the celebrity cannot be identified until they have ruled on whether the case should go to the highest court in the UK.
Sun On Sunday editors say the ban should go because the man - a showbusiness celebrity and public figure - has been named in articles abroad and his identity could be found on the internet.
The man opposed the application and said the ban should stay in place.