The broadcaster said the decision is "perverse but not surprising given the Secretary of State's hostility to the idea".
The Culture Secretary, Andy Burnham, said the Government would review the decision to block product placement in 2011 or 2012 but was maintaining the ban because "there is a lack of evidence of economic benefits, along with serious concerns about blurring the boundaries between advertising and editorial".
However, ITV's executive chairman, Michael Grade, said that the broadcaster would try to fight the decision. "I am consulting my legal team as to whether we have a strong case for judicial review," Grade said.
Channel 4, however, supported the Government. Andy Duncan, the Channel 4 chief executive, said: "We have consistently taken the view that confusing the lines between editorial and advertising raises serious issues of trust for viewers."