The decision from the U.S. court of Appeals for the Ninth Circuit means the ban will remain frozen throughout the weekend, and that a decision on a further request to reinstate the ban will be put off until at least Monday afternoon.
But the higher court's denial of an immediate stay early on Sunday means legal battles over the ban will continue into the coming week at least.
The legal challenge against President Trump's executive order was brought by the states of Washington and Minnesota, and heard by Judge Robart in Seattle. "We are a nation of laws, not even the president can violate the Constitution". "The executive order effectively mandates that the states engage in discrimination based on national origin and/or religion, thereby rescinding the states' historic protection of civil rights and religious freedom", the complaint says.
It applied to people from Iraq, Syria, Iran, Libya, Somalia, Sudan and Yemen for 90 days and indefinitely suspended entry for Syrians.
The White House, which has argued that the temporary ban is necessary to increase its vetting procedures and to prevent potential terrorists from entering the US, issued its own response condemning the court order.
Word of the decision came shortly after revelations about an earlier decision by U.S. District Judge Nathaniel Gorton out of Boston, who refused to extend a temporary order that allowed some people affected by Trump's ban to enter the country.
Breitbart's Milo Yiannopoulos will attend White House press briefing
However, on Saturday, he promised to return to UC Berkeley as part of his "Dangerous Faggot Tour". Administrators chose to cancel Yiannopoulos's speech about two hours before the event.
The states won a temporary restraining order.
"DHS personnel will resume inspection of travelers in accordance with standard policy and procedure".
U.S. District Judge James Robarts said late Friday that his ruling applied nationwide, adding that states did not have the ability to challenge his ruling, but in a statement the White House has vowed to overturn the judge's ruling. Some travelers overseas were turned back from flights into the United States, crowds of hundreds of people packed into arrival areas to protest and legal objections were filed across the country.
More than 100,000 visas previously issued to citizens of the seven countries were revoked as a result of the order, a Justice Department attorney at the Virginia hearing said, according to media reports.
The panel that will decide whether to immediately block the ruling includes three judges appointed by former Republican president George W. Bush and two former Democratic presidents, Jimmy Carter and Barack Obama.