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A sheriff upheld their plea for the charges to be dropped but prosecutors appealed the decision.
Judges Lord Carloway, Lord Brodie and Lord Turnbull have now ruled in Parkinson’s favour following an appeal hearing.
But the woman was an undercover police officer who was investigating possible links to child sex abuse.
Over the past three months the High Court in Glasgow has heard a lurid tale of sex, lies and videotape.
Sheridan, 46, forced Andy Coulson, the Prime Minister's director of communications and former editor of the tabloid to give evidence, in an attempt to prove the newspaper had set out to "destroy" him.
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In a written ruling, Lord Carloway, the Lord Justice General, said: “There was no evidence that the respondent had ever expressed any interest in sexual activity with children.