TMZ said the judge ruled Monday Jackson had no right to claim racial discrimination because she is white.
Jackson alleged Deen, 66, created a hostile work environment by using in her presence the N-word and expressing her desire to plan a 19th century plantation-style wedding.
Deen admitted in a deposition for the lawsuit that she used the racial slur, but later clarified it was years ago and in reference to an African-American man who robbed her at gunpoint.
The confession sparked a media firestorm and, although Deen apologized for her behavior and insisted she is not a racist, she was fired by the Food Network and lost numerous product endorsement deals.
"We are pleased with the court's ruling today that Lisa Jackson's claims of race discrimination have been dismissed," Deen's representatives said in a statement Monday. "As Ms. Deen has stated before, she is confident that those who truly know how she lives her life know that she believes in equal opportunity, kindness and fairness for everyone."
Celebrity Families of 2014 [PHOTOS]