A New York Supreme Court decision has cleared the way for the 33rd America's Cup to take place from 8 February, says cup holder Alinghi.
The court said on Friday it would not not hear a complaint from BMW Oracle over the origin of sails to be used by Alinghi.
The holder issued a statement saying the decision means the race will go ahead in Valencia, Spain as ordered by previous New York rulings.
BMW Oracle asked the court to decide if Swiss-based Alinghi, who sail under the colours of SNG, were allowed to defend the title with sails made in the United States.
The Deed of Gift rules for the competition say competitors' yachts must be constructed in the country they represent.
Alinghi contested the claim, saying their sails were made in Switzerland, and that sails were outside the original definition of what constitutes the yacht or vessel.
BMW Oracle were not immediately available for comment.