The parents of Charlotte Wyatt, a seriously handicapped baby from Portsmouth, have failed in their latest attempt to overturn a judgment that allows doctors to withhold life-saving treatment from their daughter.

After a day-long hearing, the Court of Appeal today refused to intervene in the case. But Lords Justices Laws, Wall and Lloyd did order a review hearing, scheduled for October, to be brought forward to hear evidence of recent improvements to Charlotte's health.

Lord Justice Laws said the court "attached a high importance to the up-to-date position being properly investigated".

In today's hearing, Darren and Debbie Wyatt argued that the condition of Charlotte, who has serious brain, lung and kidney damage, has improved dramatically since last October, when a High Court judge gave doctors permission not to resuscitate her if she stops breathing.

Last year, Mr Justice Hedley gave doctors at St Mary’s Hospital in Portsmouth the right not to resuscitate Charlotte, who is 22 months old, because her brain and other organs were so seriously damaged that she had "no feeling other than continuing pain".

An initial appeal by Charlotte's parents, who are Christians, was dismissed in April. Mr Justice Hedley, hearing the case again, ruled that it would be "pointless and possibly inhumane" to aggressively try and prolong the infant's life.

But today, David Wolfe, counsel for the Wyatts, told the Court of Appeal that Charlotte's health had enjoyed a remarkable improvement and that she can now smile and show "what may be enjoyment of things". She has gained weight, is being given pureed food, has grown and can now show "what may be enjoyment of things".

Mr Wolfe said Charlotte had previously been a "prisoner", when nothing other than and oxygen head box or face mask would deliver sufficient oxygen, but she currently spends a few hours each day sitting up and breathing with the help of nasal cannulae.

She had not yet been able to go home, said Mr Wolfe, but what had been ruled out before could now be contemplated and "is now being discussed as a real possibility".

Charlotte was smiling and she "gets positive pleasure". Previously her life had negatives and "no positives", but that had changed.

Explaining why the Court of Appeal was being asked to intervene in the case by the couple when a review hearing was scheduled for October before Mr Justice Hedley, counsel said that having the order in place was causing "enormous emotional strain because it colours their relationship with the doctors".

Mr Wolfe said Mrs Wyatt was now 21 weeks pregnant "and the strain this is placing on her is not helping her or the family". The order was a "sword of Damocles hanging over them".

The Wyatts' petition that the Court of Appeals intervene in their case before another hearing before Mr Justice Hedley later this year had been boosted by a recent letter from Charlotte's doctors, in which they described "remarkable progress" in Charlotte's condition.

The letter, written earlier this month, conceded that there was evidence that Charlotte's breathing was becoming stronger and that she might be able to see and hear.

David Lock, for Portsmouth NHS Trust, stressed: "This is not a case about disability. There is no question of not treating Charlotte because she is disabled."

He told the court: "This is a case about the balance between the benefits a treatment will deliver, if any, and the injury, the pain and the downsides of inflicting that treatment."

Mr Lock said the Trust did not wish to hold on to the declaration granted by Mr Justice Hedley "any longer than is necessary".

The quality of care given to Charlotte by hospital staff was "superb", he said. It was only in rare cases that a Trust would go to court. "We were very reluctant to start these proceedings, but felt we had to."

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