The former Mayor of London was suspended from the party last year after he claimed Hitler “was supporting Zionism before he went mad and ended up killing six million Jews”.
Speaking on BBC 5live, Mr Livingstone said he expected to lose the case – due to be heard next week – but insisted he would take further action.
The Jeremy Corbyn ally argued he had been quoted out of context, and that the reaction had stemmed from false reporting of his remarks.
Ken Livingstone threatened to take Labour to court over his suspension from the party
I'm afraid we'll have to be off to a judicial review in the courts
He added other “rabbis” had told him his comments were accurate and were backing his case.
Mr Livingstone said: “I'm afraid we'll have to be off to a judicial review in the courts and in the court, the issue will be, what was actually said and what is the truth, and the Labour Party has got no chance of winning a judicial review.
“I'm basically retired. I'm not seeking office. I haven't asked Jeremy or didn't ask Ed Miliband to send me to the House of Lords or anything like that.
"I'm a house husband, but I'm not having my political career defined at the end that I'm anti-Semitic.”
The former London Mayor was suspended from the party last year
In the feisty interview, Mr Livingstone took aim at “right-wing” Labour MPs who were “disloyal” to the party’s floundering leader calling for them to be suspended.
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Highlighting Wes Streeting and Chuka Umunna as two figures who undermined Mr Corbyn’s leadership, Mr Livingstone said: “Those that have been most over the top I think should be suspended.
“I think the other thing that Jeremy should do is re-introduce automatic re-selection. It's really ridiculous that MPs in safe seats have a job for life,” he said.
I won't be taking any lectures on loyalty from Ken Livingstone. I'm only surprised he hasn't been expelled yet. https://t.co/aCoQJGo1TY
— Wes Streeting MP (@wesstreeting) March 22, 2017
“I'm particularly talking about Chuka Umunna, Wes Streeting – basically it's the same group of MPs who were screaming that I'd said Hitler was a Zionist and I was antisemitic. The moment that issue went on hold, they were then blaming Jeremy for Britain voting to leave. Just endless criticism. It’s only about a dozen of them.
“The simple fact is they are consciously undermining Jeremy and damaging the Labour Party.”
Mr Streeting, MP for Ilford North, has already responded to the outlandish comments.
He tweeted shortly after the broadcast: "I won't be taking any lectures in loyalty from Ken Livingstone. I'm not sure why he hasn't yet been expelled from Labour."