WASHINGTON—A federal court declined to reconsider telecommunications companies’ challenge to Obama-era net neutrality rules on Monday, setting the stage for a likely appeal to the Supreme Court.

The widely anticipated rejection came just days after Federal Communications Commission Chairman Ajit Pailaid out his proposal for rolling back the net neutrality rules, giving the industry a big win. But the telecom firms and their allies are still looking to the courts for backing in their opposition to the net neutrality regulations. That could give them more legal protection whenever Democrats retake power.

TechFreedom, a conservative advocacy group that had joined in the appeal, said the decision “clears the way for TechFreedom and other parties challenging the order to take their case to the Supreme Court.” It said the case could become a vehicle for rolling back agencies’ powers.

But some legal experts question whether the high court will accept an appeal, given that the FCC is beginning its own rollback.

The FCC’s 2015 net neutrality rules were aimed at requiring internet service providers such as cable and wireless firms to treat all traffic equally.