He won the defamation case in October last year after jurors found Fairfax was motivated by malice and had failed to establish a defence of truth.
The publisher appealed the case arguing it did not receive a fair trial and the judge should have discharged the jury after Gayle's barrister attacked the credibility of the massage therapist.
Gayle also appealed the size of his payout, seeking an increase.
A New South Wales court dismissed both appeals.
Gayle caused a stir in Australia in 2016 prior to the Fairfax stories being published when he attempted to flirt with a presenter on live TV, asking her out for a drink and telling her: "Don't blush, baby."
After winning his court case last year, he tried to spark a bidding war for a tell-all interview, promising that "when I break this down to y'all it will be like a movie".
"Biding (sic) starts at $300K for this interview! So much to say & I will" he tweeted to his then 3.75 million followers.
Fairfax newspapers are now owned by commercial broadcaster Nine Entertainment, which purchased the media company last year.
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