The Federal Court has dismissed an appeal by the Victorian Government to allow grazing in Alpine National Park.

About 400 cattle were introduced to the park in 2011 in a brushfire mitigation trial.

But Federal Environment Minister Tony Burke banned alpine cattle grazing in January last year.

The Victorian Government asked the Federal Court to review the decision, but the court ruled to uphold the ban.

The State Government may have to pay costs.

The decision has been welcomed by the Victorian National Parks Association, whose spokesman Phil Ingamells says cattle should never have been allowed in the park.

"Cattle have already been shown to not reduce fire significantly in the High Country," he said.

"Shrubs are the main thing that carry fire up there.

"If they did want to produce further scientific evidence in relation to cattle grazing, they could have well done this outside the park."