Charles Bronson learned of his fate to remain behind bars from a letter from the Parole Board.
One of the country's most violent offenders, Bronson has spent nearly 50 years in prison.
Bronson, who changed his surname to Salvador in 2014, was the second inmate in UK legal history to have his case heard in public after rules changed last year in a bid to remove the secrecy around the process.
The Parole Board concluded he lacks the "skills to manage his risk of future violence". He was also denied a transfer to an open prison.
He learned of the Parole Board's decision today at 11.30am when he was handed a letter in an envelope, according to Sky News.
Bronson’s son George Bamby told the PA news agency: “I would have loved Charlie to have been released but completely respect the decision of the Parole Board.”
In a document detailing the decision published on Thursday, the Parole Board said: “After considering the circumstances of his offending, the progress that Mr Salvador has made while in custody and the evidence presented at the hearings, the panel was not satisfied that Mr Salvador was suitable for release.
“Nor did the panel recommend to the Secretary of State that he should be transferred to an open prison.”
The summary of the Parole Board decision added: “The panel noted that Mr Salvador has spent most of the last 48 years in custody and that much of this time has been in conditions of segregation.
“The panel accepted that Mr Salvador genuinely wants to progress and that he is motivated to work towards his release.
"It thought that there was evidence of improved self-control and better emotional management."
The Parole also said that it is "unknown" what is containing his risk whether its the controls of custody or "his attitudes have genuinely changed".
“However, the panel was mindful of his history of persistent rule breaking and that Mr Salvador sees little wrong with this. He lives his life rigidly by his own rules and code of conduct and is quick to judge others by his own standards. His positive progress has to be assessed in the context of him being held in a highly restrictive environment.
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“In the panel’s view, it is unknown exactly what is containing Mr Salvador’s risk. It is unclear whether the strong external controls of custody are mainly responsible or whether his attitudes have genuinely changed.
“The panel could not be satisfied that Mr Salvador has the skills to manage his risk of future violence until he has been extensively tested outside of his current highly restricted environment. The movement and categorisation of prisoners are entirely a matter for the Secretary of State, and parole panels will not ordinarily comment on such matters.
"However in the particular circumstances of this case the panel observed that there is an identified pathway for Salvador in custody and the evidence supported such a move within a closed prison."
It concludes: "In the panel’s view, this is a pivotal point in Mr Salvador’s sentence when his motivation to desist from violence is at its highest. Both psychologists instructed by Mr Salvador’s legal representative were unequivocal in their view that he no longer requires secure placement in his current prison."
"He will be eligible for another parole review in due course.”
Bronson has spent most of the past 48 years behind bars - apart from two brief periods of freedom during which he reoffended - for a string of thefts, firearms and violent offences, including 11 hostage-takings in nine different sieges.
Victims included governors, doctors, staff and, on one occasion, his own solicitor.
He was handed a discretionary life sentence with a minimum term of four years in 2000 for taking a prison teacher at HMP Hull hostage for 44 hours. Since then, the Parole Board has repeatedly refused to direct his release.
Bronson had claimed the day before the Parole Board decision that he now "hates violence" and says he has been a "model prisoner" for the last decade.
He also claimed he has "never been a danger to the public", adding, "I love the world".
He says he is not hopeful at being let out, adding in a voice note to Sky News: "I want to go home, I'm an artist born again.
"I hate violence, I despise it and that's all I've done for the last 10 years, sit in my cell, a model prisoner, polite, respectful but they still won't let me out".
The prisoner's parole hearing took place earlier this month at HMP Woodhill in Milton Keynes, Buckinghamshire.
Three parole judges, who have not been publicly named, heard from Bronson, a psychologist, a prison officer and a friend during the hearing.
A psychologist told the hearing that Bronson has post-traumatic stress disorder after facing some “brutal and unacceptable” treatment behind bars and that he holds “anti-authoritarian views”.
Judges also heard how Bronson, whose real name is Michael Peterson, had a "romantisiced" view of his past violent "rumbles".
The psychologist said Bronson should eventually be moved to a lower security prison with open conditions to allow him to interact with other people and poses “less of a risk” outside of jail.
Bronson's personal officer told the hearing he had a good rapport with the inmate.
None of the prison and probation officials who gave evidence at the parole hearing said he was ready to be released.
During the proceedings, Bronson had many outbursts including comparing himself to being on the Apprentice with Lord Sugar.
His friend Richard Booth said the pair, who speak on the phone four or five times per day, plan to set up a charitable foundation with proceeds raised by selling the 70-year-old’s art.
Pieces sold so far have raised around £100,000, of which a third is planned to go to the charitable foundation and the remaining two-thirds is held in a separate account but is not for profit, Mr Booth said.
