The Northern Ireland Secretary Theresa Villiers has rejected the request for a public inquiry into the Omagh bombing.
The blast in Co. Tyrone was one of the worst atrocities in the Northern Ireland conflict and relatives had called for an all-Ireland probe into whether more could have been done to prevent it.
But Ms. Villiers said "I do not believe that there are sufficient grounds to justify a further review or inquiry above or beyond those that have already taken place or are on-going. This was not an easy decision to make and all views were carefully considered".
"I believe that the ongoing investigation by the office of the Police Ombudsman for Northern Ireland is the best way to address any outstanding issues relating to the police investigation" she added.
Michael Gallagher, whose son Aidan died in the bombing, said he was "absolutely disappointed but not surprised".
Mr. Gallagher claimed the reasons given for the refusal were "trivial" and revealed relatives would immediately start pursuing a judicial review.
"We have the result now - it's not the result we wanted but at least we can move forward. We can go to the courts and that's exactly what we will do," he said in Belfast.
He insisted a full, public judicial inquiry with the power to compel witnesses to attend was required - pointing out that the police ombudsman does not have that ability.