The £12.50 daily charge for the most polluting vehicles is being introduced in every London borough at the end of August.
But five councils; Surrey, Bexley, Bromley, Harrow and Hillingdon, launched legal action against the plans.
The High Court says the case can proceed on two out of four grounds of the appeal with the hearing due to take place in July.
Sutton Council has also refused to sign off on an agreement which would allow ULEZ cameras to be installed.