The Swiss Criminal Court said Tuesday releasing Polanski on bail or under house arrest posed a high risk of flight.
The ruling represents another setback for the 76-year-old filmmaker who is considered a convicted felon and a fugitive by authorities in Los Angeles.
The court said Polanski can appeal the verdict to Switzerland's highest tribunal. He can also continue attempts to persuade the Swiss Justice Ministry to release him.
Polanski was arrested Sept. 26 as he arrived in Zurich to receive an award from a film festival.