Voting 8-6, the Supreme Court (SC) ruled that a person sought for extradition to another country should be jailed.
The ruling canceled the P1-million bail posted by Jimenez last year with a Manila regional trial court to avoid arrest while fighting extradition, court spokesman Ishmail Khan said.
"Our country should not be converted into a dubious haven where fugitives and escapees can unreasonably delay, mummify, mock, frustrate, checkmate and defeat the quest for bilateral justice," the court decision said.
Jimenez said he will ask the high tribunal to reconsider. Court officials said he has 15 days to file an appeal.
"I was surprised and saddened because I think my rights were violated," Jimenez, whose real name is Mario Crespo, told ABS-CBN. "I am saddened not just for myself and my family but also for my country."
His lawyer, Mario Bautista, said the court has to resolve the case with finality before it can order his clients arrest.
"Only after the Supreme Court receives and acts on our motion for reconsideration, and their decision becomes final and executory, can the issue of Congressman Jimenezs right to bail be resolved," Bautista said in a statement.
Jimenez claimed that extradition is bailable in the United States and other countries.
However, that does not seem to be so. Another close Estrada associate, Charlie "Atong" Ang, is currently detained without bail in Los Angeles awaiting extradition to the Philippines. The suspected illegal gambling kingpin is one of Estradas co-accused in his ongoing corruption trial.
Explaining its decision to cancel Jimenezs bail, the Supreme Court said extradition proceedings "are not criminal in nature."
Extradition is "merely a measure of international judicial assistance through which a person charged with or convicted of a crime is restored to a jurisdiction with the best claim to try that person," the court said.
"The ultimate purpose of extradition proceedings in court is only to determine whether the extradition request complies with the treaty, and whether the person sought is extraditable," it said.
"He has demonstrated that he has the capacity and the will to flee. These circumstances point to an ever-present, underlying high risk of flight. Having fled once, what is there to stop him from fleeing a second time?" the court asked.
Jimenezs lawyer assured the court his client would not flee. "Congressman Jimenez has freely placed himself under the jurisdiction of the courts, to the extent of surrendering his passport to the Manila regional trial court. He has been faithfully discharging his duty as representative of the sixth district of Manila, and been appearing in court when needed. There is no basis for concern that he will flee the country," Bautista said in a statement.
The Supreme Court also shot down Jimenezs argument that his constituents would suffer if he is extradited, saying they knew he was wanted in the United States before they elected him congressman last year.
"Hence, his constituents were or should have been prepared for the consequences of the extradition case against their representative, including his detention pending the final resolution of the case," the court said.
Jimenezs case has been seen as a crucial test of an extradition treaty signed by US and Philippine officials in 1996 to help the two countries fight terrorism, drug trafficking and other cross-border crimes.
Jimenez, who ran a computer parts distribution business in the United States, was indicted in 1997 in Washington on 17 counts of illegally giving nearly $40,000 to Democratic Party candidates, reportedly including Clinton.
An additional indictment charged him with conspiracy, tax evasion and mail fraud.
"These are not exactly light offenses," Justice Undersecretary Merceditas Gutierrez said, adding that Jimenez could be jailed for more than 100 years if convicted by US courts on all 47 counts.
Fourteen of the counts carry a maximum penalty of five years imprisonment each, while the rest carry a maximum penalty of one year imprisonment each.
The offenses were allegedly committed between September 1994 to March 1998. A warrant for his arrest was issued in April 1999 by Judge Robert Dube of the US district court of South Florida.
Jimenez fled the United States to escape arrest and returned to the Philippines. He helped broker several large business deals and became Estradas friend and adviser but they later had a falling out.
Estrada was ousted in January 2001 amid massive protests over his alleged corruption and misrule. Then vice president Gloria Macapagal-Arroyo took over.
The extradition proceedings were suspended last year while the government considered using Jimenez as a witness in corruption cases against Estrada. Justice officials later decided against it.
While fighting extradition, Jimenez was elected to the House of Representatives in May 2001, for Manilas sixth district, comprising Sta. Ana, Sta. Mesa and Pandacan.
The Supreme Court decision did not say whether Jimenezs immunity from prosecution as a legislator could shield him from arrest, Khan said.
Sixty-seven congressmen earlier filed a resolution to block Jimenezs extradition.
Justice Secretary Hernando Perez has said immunity normally given to local legislators only covers crimes punishable by a prison term of six years or less.
Those who voted for Jimenezs detention were Chief Justice Hilario Davide Jr. and Justices Artemio Panganiban, Vicente Mendoza, Antonio Carpio, Ma. Alicia Austria-Martinez, Renato Corona, Conchita Carpio-Morales and Romeo Callejo.
On the other hand, Justices Jose Vitug, Consuelo Ynares-Santiago and Angelina Sandoval-Gutierrez categorically said Jimenez was entitled to bail while Justices Reynato Puno, Josue Bellosillo and Leonardo Quisumbing said the case should be remanded to the lower court. With reports from Jess Diaz, Marichu Villanueva