Sean Combs has been denied bail and will remain in federal detention.
The rapper pleaded not guilty to federal court to charges of racketeering conspiracy, sex trafficking and transportation to engage in prostitution.
Combs' lawyers proposed he be put on home detention with a $50 million (£37.9 million) bond secured by his Miami residence.
However, Judge Robyn Tarnofsky told Combs her concern was "this is a crime that happens behind closed doors, even when pretrial services is monitoring," and told him she wasn't reassured that he would appear in court if released.
After the decision, Combs' lawyer Marc Agnifilo confirmed they would appeal the decision, saying, "He's going to clear his name and we're going to stand by his side as he does. We believe in him wholeheartedly."
The bail appeal will take place on Wednesday in the same New York court, in front of a different judge. "All we can do is show good faith," said Agnifilo. "We'll make it as much as we can until we get him out."
In the federal indictment, prosecutors allege Combs created and ran a "criminal enterprise" through his business empire that engaged in crimes including sex trafficking, forced labour, kidnapping, arson, bribery and obstruction of justice.
