A judge has rejected Netflix's attempt to have the £132 million slander lawsuit over the popular cartoon Baby Reindeer dismissed.

Fiona Harvey, who allegedly served as the model for the drama's stalker character, is suing the streaming behemoth for $170 million, claiming the company misrepresented "brutal lies" about her life.

Although Baby Reindeer was advertised as "a true story," according to Ms. Harvey, a number of depicted incidents, including a criminal conviction for stalking, did not actually occur.

Netflix filed an application to have the defamation lawsuit dismissed, but Judge Gary Klausner of a California court decided that Ms. Harvey's claim can proceed.

"There is a major difference between stalking and being convicted of stalking in a court of law”, he set out, in his judgment.

British comedian Richard Gadd created Baby Reindeer initially as a stage play, when it was billed as “based on a true story”.

When it transferred to Netflix, the opening episode began with the bolder claim: “This is a true story.”

Ms Harvey says she did not stalk a police officer, sexually assault Gadd, violently attack him in a pub by smashing a bottle over his head and gouging his eyes, or wait outside his home for up to 16 hours a day.

Netflix argued the depictions should be viewed as "substantially true", as similar incidents are said to have happened in real life.

But the judge found “major differences” between the show and reality, and accused Netflix of a “reckless disregard of whether statements in the series were false.”

Netflix argued viewers would understand the events in the show were not based entirely on reality, as it was a drama, but the judge found: "While the statements were made in a series that largely has the trappings of a black comedy-drama, the very first episode states unequivocally that 'this is a true story', thereby inviting the audience to accept the statements as fact."

Ms Harvey was swiftly identified online as the inspiration behind the character of Martha when the show first began to air.

Gadd took home three Emmys for the program, and Jessica Gunning was recognised for her performance as Martha.

Regarding the legal dispute, Netflix issued a statement stating: "We intend to vigorously defend this matter and to stand by Richard Gadd's right to tell his story."

The judge denied Ms. Harvey's request for punitive damages in addition to her allegations of gross carelessness and negligence.