KUALA LUMPUR- Malaysia's ruling coalition on Friday won the latest round in a battle for control of a northern state which has been in crisis since the opposition alliance was booted out in February.

Perak has been in limbo since defections cost the Pakatan Rakyat opposition its balance of power in the state which it won in general elections last year, and its chief minister Nizar Jamaluddin was sacked by the Perak sultan.

The High Court earlier this month ruled that the power grab by the Barisan Nasional coalition, which rules nationally, was illegal and that Nizar was the rightful ruler.

However, the appeals court on Friday overturned the decision, and confirmed that the Barisan Nasional - which has sworn in a new chief minister and parliamentary speaker for Perak - remained in power.

"From the facts of the case, it is clear that the respondent (Nizar) has ceased to command the confidence of the majority in the state assembly," said Judge Mohamad Raus Sharif.

The opposition, which has been pushing for fresh elections to resolve the impasse in Perak, said it would appeal the ruling.

"The public is not going to accept this," said opposition veteran Lim Kit Siang at the court. "There is no way but to go back to the people to end the political stalemate."

Prime Minister Najib Razak, who had indicated he might be willing to negotiate with the opposition over the fate of Perak, welcomed the appeal court's decision and gave no sign he was willing to hold new elections.

"The existing Perak state government is a legitimate government in accordance with the law, it can continue to govern Perak and serve the people of Perak," he said in Singapore, according to state media.

Malaysia's top legal body, the Bar Council, has warned against a lengthy legal process and said that only new elections would resolve the impasse.

The battle for Perak saw wild scenes erupt earlier this month when the assembly in the state capital Ipoh was convened for the first time since February.

Dozens of protesters were arrested outside, while in the chamber the opposition's speaker was forcibly removed from his chair and dragged out of the parliament, triggering a melee as legislators tried to shield him.