Having reviewed the case, Mr Justice Langstaff at the Leeds Administrative Court concluded the council’s arguments should be heard in full.
"The claim raises arguable issues, which merit a full hearing,” he said.
“I am pleased that the judge supports our application for a judicial review and remain confident that we have a strong case,” said councillor David Mellen, the council’s member for children’s services.
Gove is also facing legal challenges over the cancellation of BSF from Luton, Sandwell, and London’s Waltham Forest councils.