District judge Susan Webber Wright, sitting in the President's home state of Arkansas, dismissed some elements of Ms Jones' complaint, but left the central claim of sexual harassment and emotional distress which she alleges Mr Clinton inflicted on her in an Arkansas hotel room in 1991, when he was state governor. She is seeking $700,000 (pounds 500,000) in damages.
Mr Clinton has flatly denied that the incident ever took place. His lawyers asked Judge Wright to dismiss the lawsuit, arguing Ms Jones was motivated by greed and was working with his political enemies in an attempt to damage his presidency.
The judge rejected Clinton's motion. "The court finds that plaintiff has sufficiently alleged that the governor's actions were based on an intent to harass because of her status as a woman." she said in a written order.
But she rejected claims by Ms Jones that she was refused promotion because she spoke out against Mr Cinton. Both sides could reach an out-of-court settlement but Mr Clinton's personal lawyer, said on that Mr Clinton would not apologise under any circumstances.
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