The judgment, by a panel of five Law Lords constituting the highest court in the land, means that Pinochet must stay in Britain to face an extradition request by a Spanish judge. The Law Lords were ruling on an appeal against a high court decision that Pinochet's arrest in a London hospital on October 16 was wrong because the offences against Spanish nationals of which he is accused took place while he was head of state.

In a passage of high drama, the five Law Lords briefly gave their individual judgments in the splendour of the House of Lords, the upper chamber of parliament. The first two judges rejected the appeal, raising the prospect that Pinochet, celebrating his 83rd birthday, would be free to go home. But the next three judges all disagreed, siding withlawyers for the British and Spanish governments who argued that Pinochet has a case to answer.

Anti-Pinochet protesters outside parliament greeted the ruling with cheers. The ruling means the next move is up to Home Secretary Jack Straw, Britain's interior minister, who must make by December the politically controversial decision whether to go ahead with extradition proceedings.

AFP ADDS: Human Rights Watch hailed today's decision to reject immunity for Chilean ex-dictator Augusto Pinochet, saying it was ``a great day of victory for Pinochet's thousands of victims.''

``The wheels of justice are turning at last,'' said a statement issued by Reed Brody, advocacy director of the New York-based group.