The appeal by Mr Aldhouse to Britain's High Court has been dismissed and will not be continued to the Supreme Court, according to a statement from the Home Office in Britain.
Mr Aldhouse, now 30, will become the first Briton extradited to Thailand to face a criminal charge - and officials who have been working for his extradition in Thailand and on Phuket will be delighted.
The family of Dashawn Longfellow in the US has been waiting and hoping since Aldhouse was arrested to hear of his extradition.
Today Mr Longfellow's aunt described the news as a ''victory for international justice.''
Phuketwan was trying to contact Bangkok officials today to learn when Mr Aldhouse would be reappearing in Thailand and what arrangements have been made for his trial.
At the time Mr Longfellow was ambushed and stabbed to death on August 14, 2010, at his apartment in Rawai, police pursued Aldhouse, who had been in a fist fight he started but lost to Longfellow earlier in the night.
But Aldhouse escaped Phuket and travelled overland to Cambodia, then caught a flight from Singapore to Heathrow in London, where he was held on an outstanding weapons charge.
Dramatic security camera footage taken in a 7-Eleven store on Phuket near the Freedom Bar, where the pair had argued and fought, showed a man who looked like Lee Aldhouse scoop up two knives and leave in a hurry.
If Mr Aldhouse, from near Birmingham, is found guilty and sentenced to 15 years or less, he will be housed in Phuket Prison, where the number of inmates recently rose above 2000 in a facility built for 800.
DASHAWN Longfellow's mother, Tamee, speaking from the US, said today: ''It's an emotional day for me. Every day is an emotional day.
''I am going to do my best to see if I can get some help to go to Thailand for the trial. I want to be there. I have to be there.''
Mrs Longfellow could not continue the conversation. The family and friends have conducted a long Facebook campaign to push for Aldhouse's extradition. This year their campaign included a petition to the British High Court.
Mrs Longfellow's sister, Bobbette Anderson, told Phuketwan from the family's hometown of Norman, Oklahoma : ''We are awaiting confirmation of the news from the US embassy in London. We're thrilled to hear it. We want to make sure that it's real.
''This is a major victory for international justice. I hope we can make it to Thailand for the trial.''