The schools clashed with St Helen's Council after it called on them to accept children in care ahead of other pupils. The schools then claimed churchgoing families would suffer if even a small number of non-Catholic pupils from care homes were given places.
Now the Office of the Schools Adjudicator has upheld the objections made by the council. In his report, adjudicator Dr Alan Billings said: "The school's oversubscription criteria should include as first priority children in public care.
"Although the placing of children in public care is likely to be rare, it is essential for their welfare that a local authority can do this with the minimum of delay or uncertainty."
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