Legal experts say no trial is likely before the end of the year - if the matter is not settled out of court first.
Opening skirmishes in the legal battle have seen Mr Walsh repeatedly try, and fail, to block the action.
Last year, he asked the High Court to halt the case in the English courts, claiming that - as the article was published in the U.S. and Schwarzenegger and his team are all American - there was no case to answer in this country. The application was dismissed.
Yesterday, Richard Spearman, QC, for the defendants, asked for permission to appeal against the decision.
But the Court of Appeal said that as Miss Richardson is a British citizen and the alleged libel was published on the Internet, any libel trial should take place here.