PM Gilani will now appear before the court on February 13.
"The appeal is dismissed," Chief Justice Iftikhar Chaudhry said in court, reading the decision of the eight-member bench.
The SC's order included references of controversial NRO case history and government's failure to implement court's orders.
Earlier today, Barrister Aitzaz Ahsan concluded his arguments in the contempt case hearing in Supreme court.
The Supreme Court on Friday resumed the intra-court hearing on the appeal of Prime Minister Yousuf Raza Gilani.
The Eight-members larger bench of Supreme court heard the case under the head of cheif Justive Ifthikhar Muhammad Chuadary.
Other members of the larger bench include Justice Mian Shakirullah Jan, Justice Jawwad S Khawaja, Justice Anwar Zaheer Jamali, Justice Khilji Arif Hussain, Justice Tariq Parvez, Justice Mian Saqib Nisar and Justice Amir Hani Muslim.
Counsel for PM Gilani, Barrister Aitzaz Ahsan completed his arguments today as directed by the court on the previous day.
During the proceedings, Aitzaz said that the contempt issue against the prime minister was a serious one and he appeared before the bench as pro bono as he did not want any clash between the institutions.