The decision was issued on Monday by a three-judge panel of the 2nd US Circuit Court of Appeals in Manhattan.
The May 2023 verdict stemmed from an incident around 1996 in a Bergdorf Goodman department store dressing room in Manhattan, where Carroll said Trump raped her, and an October 2022 Truth Social post where Trump denied Carroll's claim as a hoax.
Donald Trump has been ordered to pay columnist E Jean Carroll a total of $88.3 million ($A142.1m). (AP PHOTO)
Though jurors in federal court in Manhattan did not find that Trump committed rape, they awarded the former Elle magazine advice columnist $US2.02 million ($A3.25 million) for sexual assault and $US2.98 million ($A4.79 million) for defamation.
A different jury ordered Trump in January to pay Carroll $US83.3 million ($A134 million) for defaming her and damaging her reputation in June 2019, when he first denied her rape claim.
In both denials, Trump said he did not know Carroll, she was "not my type," and that she fabricated the rape claim to promote her memoir. He is appealing the $US83.3 million ($A134 million) verdict.
Lawyers for Trump did not immediately respond to requests for comment. A lawyer for Carroll did not immediately respond to a similar request.
Carroll's cases are continuing despite Trump's having won a second four-year White House term on November 5.
In 1997, in a case involving former President Bill Clinton, the US Supreme Court ruled unanimously that sitting presidents have no immunity from civil litigation in federal court over actions predating and unrelated to their official duties as president.
Trump's lawyers argued the $US5 million ($A8 million) verdict should be thrown out because the trial judge, US District Judge Lewis Kaplan, should not have let jurors hear testimony from two other women who accused Trump of sexual misconduct.
One, businesswoman Jessica Leeds, said Trump groped her on a plane in the late 1970s. The other, former People magazine writer, Natasha Stoynoff, said Trump forcibly kissed her at his Mar-a-Lago estate in 2005.
Trump's lawyers also said the trial judge should not have let jurors watch a 2005 Access Hollywood video where Trump boasted graphically about forcing himself on women.
But the appeals court said Trump failed to show that Kaplan erred, or that any errors warranted a new trial.
Judge Kaplan also oversaw the trial that ended with the $US83.3 million ($A134 million) verdict.Â
