The Supreme Court of Victoria will not hear his appeal, following a decision on Tuesday, but will stay in the County Court as per usual process.

The United Patriots Front leader, and two of his supporters, were convicted in September 2017 of inciting hatred, contempt and ridicule of Muslims after making a video beheading a dummy in protest of a Bendigo mosque.

Following the Magistrates Court decision that the trio had "crossed the line", Cottrell made an immediate bid for appeal.

In February, his application to elevate the matter to the High Court was rejected, after arguing he was convicted by an "invalid" law under the Australian constitution.

He then tried to take the matter to the Supreme Court, via its Court of Appeal.

Cottrell's lawyer John Bolton argued Victoria's Racial and Religious Tolerance Act 2001 impermissibly burdened the freedom to communicate.

County Court Judge Lisa Hannan on Tuesday dismissed the application, saying there were factual matters still to be decided - such as Cottrell's intentions in making the video - before the case went to a higher court.

She said her court was adequately equipped to hear the matter, and referring it on at this stage would only "fragment" the case.

Judge Hannan accepted the case was important to Cottrell and could be an issue of significance to the community, but it was neither "novel nor complex".

Cottrell, a self- described "dissident", was not in court for the decision, but afterward slammed on social media what he described as "fake news" surrounding his case.

Cottrell, who is banned from Twitter, Facebook, Instagram and other platforms, posted via "Gab Social", known for its far-right user base.

"What the petty-bourgeois media class is producing is not only misinformation, but straight-out lies as usual," he said.

"I haven't failed anything, the trial hasn't begun yet. I have been simply trying to refer the matter to a higher court because I believe higher courts are less susceptible to media pressure and the bureaucratic tentacles of state corruption."

He said his attempts to elevate the matter were "aggressively" opposed by Victoria's legal representatives to keep his appeal at the lower courts "and assist in my prosecution".

In May, Attorney General Jill Hennessy said she would intervene in the case to argue the state legislation was not unconstitutional.

In September 2017, Cottrell and supporters Neil Erikson and Christopher Neil Shortis were convicted and fined $2000 each, the first convictions under the Racial and Religious Tolerance Act.

The County Court appeal is set down for a 10-day hearing, starting August 12.

Australian Associated Press