PTS on Monday halted 5G spectrum auctions after a court suspended parts of its earlier decision, in which it followed Britain in banning Huawei equipment from 5G networks, citing national security risks.
The Chinese company had appealed against PTS' decision to exclude it, saying it wanted a court to check if it had been taken according to the law.
"PTS will appeal the administrative court's decision on inhibition to the next instance," the regulator said in a statement on Friday.
The auctions were originally expected to start this week, and would have benefited Nokia and Ericsson as PTS had asked companies taking part to remove Huawei and ZTE equipment from their infrastructure.
PTS said in Friday's statement that it would wait for a decision from the administrative court of appeal to decide how to proceed with auctions.
Huawei told Reuters on Monday that it had no plan for more legal action, and was waiting to have a constructive dialogue with Swedish authorities.
(Reporting by Helena Soderpalm; editing by Johan Ahlander and Jane Merriman)