Far-right extremist Blair Cottrell's appeal against his conviction for inciting hatred, after beheading a dummy in protest over a mosque, has failed.

The former United Patriots Front leader had his previous conviction reinstated and he was fined $2000 in the Victorian County Court on Thursday.

"I'm not surprised," Cottrell said outside court of his failed appeal.

He said he was now broke.

"My bank accounts been closed down, my PayPal account has been closed down. The fact that I'm at court now wearing a suit is a miracle."

Former United Patriots Front leader Blair Cottrell's appeal against his conviction has failed. Credit: JULIAN SMITH / AAPIMAGE

Cottrell was found guilty of inciting hatred, contempt and ridicule of Muslims after making a video beheading a dummy, in protest of a Bendigo mosque.

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Cottrell, Neil Erikson and Christopher Neil Shortis were convicted and fined in 2017 over the beheading video, involving a dummy made of pillows and red liquid squirting from its head.

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