The United States Court of Appeals for the Seventh Circuit has formally reversed the appeal for Brendan Dassey's conviction on Tuesday.
In June, a three-judge panel ruled 2-1 that Dassey's confession to helping his uncle Steven Avery rape and murder Teresa Halbach was coerced by investigators.
The state previously said that if the full court does not take the case or rules against the state, it would consider taking the case to the Supreme Court.
A full federal appeals court heard arguments in September.
Dassey was sentenced to life in prison in 2007 after telling detectives he helped his uncle, Steven Avery, rape and kill photographer Teresa Halbach.