ANCHORAGE — A federal appeals court panel on March 16 reversed a decision that had rejected a land swap aimed at allowing construction of a road through an Alaska national wildlife refuge which is an internationally recognized habitat for migrating waterfowl.

A panel of the 9th U.S. Circuit Court of Appeals sent the decision back to U.S. District Judge John Sedwick in Alaska for further consideration. Nine environmental groups had sued to stop the land swap on the Alaska Peninsula.

Sedwick blocked an agreement that would have allowed the Interior secretary and King Cove Corp., a Native vi...