In a case that could go to the U.S. Supreme Court, a federal appeals court ruled that the University of Michigan law school's policy of considering race as a factor in deciding which students to accept is legal.

"We've find that the law school has a compelling state interest in achieving a diverse student body," the 6th U.S. Circuit Court of Appeals in Detroit said.

The recent 5-4 ruling, which reverses an earlier decision by a lower court, sprang from two consolidated lawsuits brought by White students who were denied admission to the university. They contended that Michigan's law school and undergraduate admissions policies discriminate against Whites in favor of less-qualified minorities.

The university argued that racial diversity enhances the education of all its students. It said it considers race among a number of factors, including an applicant's academic record.

Analysts have said the Michigan case could give the Supreme Court an opportunity to revisit the 1978 Bakke case, involving the University of California, which allowed consideration of race in college admissions but banned racial quotas.

In a dissent, Circuit Judge Danny Boggs called Michigan's policy "a straightforward instance of racial discrimination by a state institution."

University of Michigan Interim President B. Joseph White called the recent ruling "a very wise decision, both for the university and for all of higher education."