P&ID had won a $9.6 billion judgement against Nigeria in a British court. The award has been accruing interest since 2013 and is now worth more than $9 billion.
Both P&ID and the Nigerian government claimed Thursday's court decision as a victory.
A former President of the Business Recovery & Insolvency Practitioners Association of Nigeria (BRIPAN), Dr Biodun Layonu (SAN), has described the leave to Nigeria to appeal the arbitral judgment as good news for the country.
Malami, in a brief from London sent to reporters in Abuja, said: "Leave to appeal has been granted".
The court also granted a stay of execution on the judgment, thereby giving the federal government the opportunity to appeal the UK Arbitration Tribunal in the UK Court of Appeal.
"We will study the court rulings, exercise the right of appeal and consider the legal options available at our disposal as it relates to the payment of $200million in view of the 60-day window stipulated by the court", he said.
"As you'll be aware, the High Court in the United Kingdom heard arguments in the case today, with the Nigerian government seeking a stay of asset seizures and leave to appeal the asset seizure decision".
In its bid to quash the August ruling by the United Kingdom court, a federal government delegation comprising Malami, the Central Bank Governor, Godwin Emefiele and the Inspector -General of Police, Mohammed Adamu proceeded to the United Kingdom to persuade a British court to set aside an order permitting P&ID to seize $9.6 billion worth of assets from Nigeria.
The company was given the go-ahead to seize Nigerian assets after the ruling and the award is equivalent to a fifth of the West African state's foreign exchange reserves.
P&ID has called the investigation in Nigeria a "sham" that denied its subjects due process.
P&ID is run by Irish businessman Brendan Cahill after his partner in the firm, Michael Quinn, passed away.
Nigeria is seeking the help of Irish law enforcement and the U.K.'s National Crime Agency, for the extradition of Cahill and Quinn to face trial in the country.
Similarly, Justice O.A. Adeniyi of the FCT High Court sitting in Apo, Abuja, had on Wednesday admitted to bail in the sum of N10 million Grace Taiga, former director, Legal Services in the Ministry of Petroleum Resources, in the multiple fraud involving P&ID.
Taiga is now on trial for allegedly conniving with the company in a bid to defraud the country.
Meanwhile, a statement from P&ID following yesterday's hearing in London said it was pleased with the conditions given before Nigeria could appeal the $9.6 billion award.
But P&ID said the fraud allegation about the agreement turned out to be a mere red herring as no evidence was put forward to back it by the Nigeria's legal team in court.
The company said Nigeria knew that there was no fraud and the allegations were merely political theatre created to deflect attention from government's own shortcomings.