The widely expected decision removes a cloud hanging over Brazil's most uncertain election in decades.
The 72-year-old leader of the Workers' Party (PT) is aiming for a third term in the top job having led Brazil from 2003 to 2010.
Top members of Lula's Workers Party (PT) are planning a march in Brasilia to register his candidacy with electoral officials just hours before the deadline.
In public, allies of former President Luiz Inacio Lula da Silva are pulling out all the stops to get the imprisoned leftist leader to run in October’s election.
Lula leads opinion polls, but is likely to be barred from running because of his criminal conviction for corruption and money-laundering.
Despite his 12-year jail sentence for corruption, Lula remains the country’s most popular politician, leading opinion polls ahead of the presidential vote.
Moro, who sent Lula to prison in April for a bribery conviction, said the appeals court judge lacked authority to issue an order freeing him for campaigning in the run-up to the October vote.
Despite having been jailed, Luiz Inácio Lula da Silva remains the Workers' Party's candidate of choice for Brazil's upcoming presidential elections.
Lula had entered prison in the southern city of Curitiba late on Saturday, becoming Brazil's first ex-president to be jailed on a criminal conviction.
An earlier attempt to leave by car had been blocked by a crowd of supporters who opposed his arrest.
Lula remains holed up inside the headquarters of a steelworkers union in metropolitan Sao Paulo, surrounded by hundreds of fervent supporters, creating a standoff expected to stretch into the weekend.
Brazil's former president Luiz Inacio Lula da Silva, once one of the most popular politicians on the planet, was given 24 hours to surrender to police Thursday and start a 12 year prison sentence for corruption.
Brazil's Supreme Court on Thursday rejected former president Luiz Inacio Lula da Silva's bid to delay a 12 year prison sentence for corruption in a ruling that could upend presidential elections in Latin America's biggest country.
Brazil's Supreme Court was on the verge of rejecting on Wednesday former president Luiz Inacio Lula da Silva's plea to remain out of prison while he appeals a corruption conviction, a case that has sharply divided the country, cast a shadow over this year's presidential election and stirred rumblings in the army.
Up to 20,000 people has turned out after work in the country's biggest city Sao Paulo, as well as a few thousand in Rio de Janeiro and smaller numbers in other cities.
The Secretariat of Public Security of Parana says it was investigating the incident and that Lula was not on the bus at the time of the attack.
The Federal Supreme Court's decision on the imprisonment of former Brazilian President Luiz Inácio Lula da Silva will now be made on April 4, 2018.