According to a charity called Christians from Pakistan, its UK legal advocacy group, CLAAS, will challenge the decision.
Zafar Bhatti has been in jail since the accusation was made in 2012.
Nasir Saeed, Director of CLAAS-UK expressed disappointment over the court's ruling and insists Bhatti is innocent.
He said: "The lower court's judges always hesitate to make decisions on the merit, or free people accused of blasphemy, and instead transfer their burden to the higher court without realizing how their decision will impact the accused and their families' lives."
He added the appeal will take several years to be heard in court.
