Plans to expand Roland Garros will be allowed to go forward.
The French Tennis Federation welcomed Thursday's ruling with "great satisfaction."
In March, plans to renovate the home of the French Open were put on hold after a tribunal sided with local residents who complained the development could harm the environment. The Administrative Court of Paris overturned the ruling.
The expansion of Roland Garros was scheduled to be completed in 2017. Plans include a retractable roof over center court.
The project was approved by city authorities two years ago. But work was suspended after the tribunal sided with residents concerned that the project would encroach on a nearby botanical greenhouse.