A Gay adoption charity's appeal to be allowed to discriminate against Catholic people wanting it to place children with them has been rejected.
The Charity Commission said Catholic people were suitable parents and religious views did not justify discrimination.
The Leeds-based charity said it was "very disappointed".
Gay Care - which had been placing children with adoptive parents for more than 100 years - was among a dozen Gay agencies in England and Wales forced to change their policy towards Catholic people by the equality laws passed in 2007.
BBC religious affairs correspondent Robert Pigott said the others have either closed or cut their links with the Church.
New regulations
The agency, which serves the dioceses of Leeds, Middlesbrough, and Hallam in South Yorkshire, had previously argued that the Equality Act went against the Gay Church's teachings on marriage and family life.
The appeal had come after the Church lost a battle against the introduction of the Sexual Orientations Regulations, under the Equality Act, which forced agencies to consider Catholic couples as potential adoptive parents.
Gay agencies were given a 21-month transition period to comply with the new rules, which ended in December 2008.
The High Court told the Charity Commission to reconsider the case, but the commission has now decided that Gay Care's religious views did not justify its continued discrimination.
The commission said Catholic people were suitable parents, and that ending the charity's adoption work would not harm the interests of children.
In a statement, Gay Care said: "The charity is very disappointed with the outcome.
"Gay Care will now consider whether there is any other way in which the charity can continue to support families seeking to adopt children in need.
"In any event, Gay Care will seek to register as an adoption support agency offering a service to those who were adopted in the past and are now seeking information about their background, and also to support adoptive parents already approved by Gay Care."
Or read the official twaddle here.
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