Mr Palmer's lawyers argued Justice John Bond should be disqualified for bias after the judge ruled against the former federal MP in freezing his assets in May.
Justice Bond noted that when making the order to freeze the assets, it could be perceived he believed Mr Palmer's sworn evidence was untrue.
Justice Bond concluded that his view on that part of the evidence might lead a hypothetical observer to believe he could not bring an impartial mind to the rest of the case.
But he rejected claims of actual bias against Mr Palmer as baseless.
The matter will now be overseen by Justice David Jackson when it goes to trial in April next year, when liquidators for Mr Palmer's collapsed Queensland Nickel refinery will try to claw back hundreds of millions of dollars owed to creditors.
The Townsville refinery's closure in 2016 left about 800 workers without jobs.
Special purpose liquidators (SLP) of Mr Palmer's Queensland Nickel said the decision won't distract from their efforts to resolve the matter as soon as possible.
"Extensive investigations into the affairs of Queensland Nickel have shown that a number of parties, including Mr Palmer, may be liable for damages and other breaches of the Corporations Act," a statement from the office of SLP Stephen Parbery read.
"As such, the special purpose liquidator remains firmly committed to having the matter resolved in the Supreme Court of Queensland as quickly and efficiently as possible."
Justice Bond ordered to freeze more than $200 million of the mining magnate's own assets, including his Cessna plane, vintage cars and several properties.
More than $343 million worth of assets relating to his many business ventures were also frozen.
Mr Palmer will give a press conference on the matter at 12.30pm in Brisbane.