Maddie McCann's parents heartbroken over failed appeal to secure damages over ex-cop's book

Madeleine McCann's parents' supreme court appeal to secure damages from an ex-policeman has failed after his banned book, that made claims the couple covered up the killing of their toddler, was deemed "within the limits of a democratic society".

Portugal's supreme court on Tuesday upheld the initial appeal of Goncalo Amaral, sued for libel by Kate and Gerry McCann after the British toddler disappeared during a family vacation in 2007.

Mr Amaral, who had led the inquiry into the child's disappearance in Praia da Luz in southern Portugal, just a few days before her fourth birthday, was sued over his 2008 book "The Truth of the Lie".

In the book, he accused Mr and Mrs McCann of concealing their daughter's body after her accidental death.

The parents of Maddie McCann have lost their bid against the former police officer who claimed they killed their three-year-old daughter.

Maddie was taken when she was three-years-old. Photo: Yahoo7

Mr Amaral had originally been ordered to pay the parents of the missing girl $712,000 plus more than $140,000 in interest, but that judgement was struck down on appeal last April.

The supreme court ruled Tuesday that "Goncalo Amaral did not abuse the liberty of expression", as his claims remained "within the limits tolerated in an open and democratic society".

The decision is final in Portugal, but can be appealed before the European Court of Human Rights, however that is considered an extremely costly process.

It is understood that Mr Amaral profited more than $560,000 from his tell-all book before it was eventually banned and production was terminated.

The controversial book was eventually banned. Source: AAP

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After 14 months of controversial investigations which saw Madeleine's parents interrogated and Mr Amaral sacked, Portuguese police closed the case in 2008 before reopening it five years later.

British police opened their own inquiry in July 2013, but excavations in Praia da Luz yielded no evidence.

There have been multiple theories and leads on what happened to Maddie McCann. Source: Supplied.

Madeleine McCann picture on a Portgual beach in the final days before she went missing

Mrs McCann has publicly maintained that she believes her daughter is still alive despite nearly a decade passing since her disappearance.

“I’ve always said Praia da Luz is the place where I feel closest to her,” she said in 2016.

“That’s where she last was and I don’t think she’s been taken a million miles from there.

“We will never give up. You couldn’t settle if you thought about giving up."

The parents last year revealed that they had told Maddie's twin siblings, Sean and Amelie, 12, everything about her disappearance.