The inquiry into David Harold Eastman's murder conviction is free to continue, with a judge on Tuesday dismissing an application to sack the inquiry head.
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Eastman is serving a life sentence for the 1989 murder of Australian Federal Police assistant commissioner Colin Winchester.
He has always maintained his innocence.
The current inquiry was ordered in August last year after fresh evidence cast doubt on Eastman's guilt.
The probe was tasked to investigate the 1995 conviction on 19 grounds, including fitness to plead, forensic evidence, and the conduct of the prosecution and investigating police.
It has been under way for about six months.
But the work has ground to a standstill with wrangling over legal representation and Eastman's fresh challenge.
Eastman applied to the ACT Supreme Court to have inquiry head Justice Kevin Duggan removed over concerns of perceived bias.
The dispute centres on the appointment of a lawyer acting as junior counsel assisting in the inquiry.
Joe Kellaway, who has since stood down from the inquiry, worked as a research assistant to Acting Justice Jeffrey Miles on a 2005 inquiry into Eastman's fitness to plead.
Eastman argued Mr Kellaway's involvement created perceived bias and compromised the impartiality of the current inquiry.
But lawyers for the defendant said Mr Kellaway had a limited involvement in the 2005 inquiry, and had played only a small role in the current probe.
The defence said that role had ended recently, with Mr Kellaway returning his brief for personal reasons.
ACT Supreme Court Acting Justice Steven Rares dismissed the application, saying a fair-minded observer would reject the appointment as perceived bias.
