The sale of the Van Diemen's Land Company (VDL) dairy farm in Tasmania's north-west to a Chinese buyer remains stalled after a Melbourne court ruling.

A sales contract between VDL's owners and Australian company TasFoods was trumped by Moon Lake Investments, owned by Chinese Businessman Lu Xianfeng who offered more money.

TasFoods challenged the sale in the Supreme Court of Victoria with an injunction blocking the sale to Moon Lake claiming the owners of VDL had breached the sales contract.

The injunction was removed when a judge said he was not convinced TasFoods had a strong case.

It has now taken the case to the Victorian Court of Appeal.

During proceedings in the Supreme Court in Melbourne today, Moon Lake gave an undertaking that it would not settle the sale without first giving five days of notice to TasFoods.

That would allow TasFoods time to lodge an appeal, calling for the earlier injunction blocking the sale to be reinstated.

TasFoods' case against the owners of VDL will go to trial in February.

VDL includes 20,000 hectares of land in north-western Tasmania and 18,000 milking cows.