London Secure Services launched a judicial review against the YJB after the body decided not to renew its contract and those of three other secure children's home providers in March.
High Court judge Sir Thayne Forbes also rejected a challenge to the tendering process brought by two young people who had been remanded to secure children's homes.
Summing up earlier this week, he said: "I am satisfied that the YJB's placement policy does not lack the necessary clarity and transparency, nor is it unlawful."
Frances Done, chair of the YJB, welcomed the decision.
"The YJB is committed to the future of secure children's homes as a means of providing quality secure accommodation," she said.
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