Welfare-dependent Bruce Lehrmann has been handed a reprieve as he tries to overturn a major defamation loss after a judge declared his right to appeal should not be stymied by a $200,000 payment.

Network Ten and journalist Lisa Wilkinson have been blocked in their bid to get the funds paid to the court as security in the event the 29-year-old fails in his legal challenge.

On Wednesday, Federal Court Justice Wendy Abraham found there was a public interest in allowing Lehrmann to pursue what she described as arguable grounds of appeal.

“The finding against him is extremely serious,” the judge said.

“The impact on him if he is denied that right (of appeal) is self-evident.”

The 29-year-old has sued over a February 2021 report on The Project interviewing Brittany Higgins about her allegations she was sexually assaulted in Parliament House in March 2019.

In April, Justice Michael Lee ruled that Lehrmann sexually assaulted Ms Higgins in Parliament House based on the balance of probabilities.

The ex-Liberal staffer denies the claim and is not facing criminal charges over the incident after his trial was aborted due to juror misconduct.

Lehrmann, who is supported by Centrelink benefits, would have to abandon the appeal if made to stump up the $200,000, Justice Abraham said on Wednesday.

She criticised Ten’s arguments that the appeal was not in the public interest as “too narrowly described” and “misplaced.”

She also pointed out the network and Wilkinson had also challenged various aspects of Justice Lee’s findings, including that they had acted unreasonably by publishing Ms Higgins’ claims of a Liberal cover-up of the rape.

“There are no real winners in this litigation,” she said.

Justice Abraham also allowed Lehrmann to stay previous court orders that he pay $2 million in legal fees to Ten for their costs of defending the proceeding.

Being forced to pay that amount now would throw him into bankruptcy and affect his ability to pursue the appeal, she wrote.

Ten has already served a bankruptcy notice on the 29-year-old but has agreed not to take any further steps until the appeal is resolved.

He will also be on the hook for Wilkinson’s legal costs, which are currently unknown.

In submissions filed with the court, Lehrmann claimed he was owed “either a seven-figure sum or at least hundreds of thousands dollars” for being defamed.

The judge ordered Ten and Wilkinson reimburse Lehrmann for his legal costs of the security and stay applications.

The matter will return to court on November 6, when it is hoped a date for the appeal hearing will be set down.

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