Riots at the Melbourne Youth Justice Centre at Parkville last month caused significant damage, resulting in some detainees being sent to the maximum security Barwon Prison for adults.
The Supreme Court ruled their detention was unlawful.
The Court of Appeal upheld that ruling, finding the state government had unlawfully failed to consider the inmates' legal rights when Barwon's Grevillea unit was declared a youth justice and remand centre.
The court gave the state government until Friday to move the teenagers.
But the government circumvented the order, by gazetting the unit as a youth justice facility and remand centre.
The Victorian Youth Affairs Minister, Jenny Mikakos, says it resolves any concerns the court may have had around the human rights of the minors detained.
"For example, in relation to schooling, the young offenders at Grevillea have access to the same hours of schooling as exist at our other youth justice centres, so we believe all the steps have now been taken to address the concerns of the court, and all the requirements have been put in place now to ensure that the Grevillea unit can operate as a safe and secure facility, providing for the best interests of these young offenders."
But the childrens' lawyers are accusing the government of defending the indefensible.
The Human Rights Law Centre's Ruth Barson says they will look at further legal options.
"The government can change the name, but it cannot change the facts. I've been to Barwon, it's unequivocally unfit for children. Children belong in an appropriate youth justice facility. We know that children are different to adults, we know they have great capacity for reformation and rehabilitation. They should be in an environment that capitalises on that capacity, which gives them the opportunity to attend school to see family and to be in an appropriate environment."
The state opposition says the detainees should have been sent to Barwon Prison a long time ago.
The opposition's Legal Affairs spokesman, John Pesutto says the Liberals have been calling on the premier to move violent youth offenders to adult facilities.
"The youth offenders who the government moved to Barwon, should have been moved months ago. We've been calling on Daniel Andrews to do this. There is no place for the sort of violence and property damage, wanton damage and destruction that these youths have been perpetrating in these youth justice facilities."
The state government says its juvenile detention centres have been operating at full capacity since the riots with 60 secure beds not able to be used.
Jenny Mikakos says more detainees are expected to be sent to the adult prison while repairs and fortifications are completed over the coming months.
Lawyer Ruth Barson insists the maximum security facility is no place for minors.
"Children do not belong behind the same razor wire as the state's most hardened, most notorious criminals."
Lawyers will visit Barwon Prison on Monday.