Campaigners battling controversial plans to redevelop Crystal Palace Park are to take their fight to the UK's second highest court after judges gave their legal challenge the green light.

Crystal Palace Community Association (CPCA) has been given permission to appeal the approval of the £67.5m Crystal Palace Park masterplan, blueprints that involve the construction of 180 luxury flats on metropolitan green land.

The plans were approved by Eric Pickles, Secretary of State for Communities and Local Government, in 2010 and the High Court rejected campaigners' protests earlier this year.

The campaigners are concerned that allowing residential property to be built on parkland could set a dangerous precedent for future developments.

But last week a judge at the Royal Courts of Justice found merit in the CPCA's claims that the masterplan was in breach of planning law, meaning the group can take its case in the Court of Appeal next year.

Robert McCracken QC representing CPCA, had argued it could be unlawful to consider the masterplan under outline planning permission and raised concerns about the adverse impact the flats would have the park’s bat population.

John Payne, the group's chairman, said: "We are encouraged that the judge found for us and that we have an opportunity to appeal, however there is still much to do.

"We have had messages of support from all around. There is very strong belief that we have to oppose these plans. These flats will serve no purpose."

The CPCA has two barristers and a solicitor working free of charge as it prepares to go to court in summer 2013.

Mr Payne said: "We are very lucky that we have been able to have barristers working for us pro bono. The case will set a precedent for all our parks and green spaces, which is why it is so important. It threatens all our parks.

"While the masterplan had some good bits to it the issue is that it opens the door to commercial developments on all of our green spaces. That's what makes it so concerning."

The masterplan, which includes a new regional sports centre, 50m swimming pool, a museum and a horticultural college, was originally unveiled in 2007.

Three years later Mr Pickles said he would allow the 180 flats to be built first at the site to fund park's restoration.

The London Development Agency (LDA) , that is behind the redevelopment of the park, has argued the proposal is the best opportunity to protect the Grade II-listed park and the listed buildings in it which were on the Heritage at Risk Register.

A spokesman for the Greater London Authority, which is in charge of the masterplan, said it could not comment on the ongoing legal proceedings.