Labour has readmitted former leader Jeremy Corbyn following his suspension last month, the BBC understands.
He was suspended over his reaction to a report on anti-Semitism within the party, when he said the scale of the problem had been “overstated”.
It is not yet clear whether Mr Corbyn will face further sanctions, following a meeting of Labour’s ruling body.
New leader Sir Keir Starmer has spoken out against anyone who describes anti-Semitism in Labour as “exaggerated”.
But the decision to suspend Mr Corbyn was taken by the party’s general secretary David Evans, although Sir Keir endorsed it.
It followed the publication of a report by the Equality and Human Rights Commission (EHRC), which found Labour had breached the Equalities Act over its handling of complaints of anti-Semitism during Mr Corbyn’s time in charge.
The ex-leader reacted by saying that his opponents had “dramatically overstated” the scale of anti-Semitism within the party for political reasons.
A Labour spokesman said Mr Corbyn had been suspended “for a failure to retract” his words.
A panel made up of members from the party’s National Executive Committee met on Tuesday to decide whether to take further disciplinary action or to lift his suspension.
Following his reinstatement, Mr Corbyn said: “I’m grateful to the many thousands of Labour Party members, trade unionists and supporters in Britain and around the world, who have offered their solidarity.
“I hope this matter is resolved as quickly as possible, so that the party can work together to root out anti-Semitism and unite to oppose and defeat this deeply damaging Conservative government.”
But the Jewish Labour Movement called the decision to reinstate Mr Corbyn “extraordinary”, adding: “After his failure of leadership to tackle anti-Semitism, so clearly set out in the EHRC’s report, any reasonable and fair-minded observer would see Jeremy Corbyn’s statement today as insincere and wholly inadequate.”
After the EHRC report was published Sir Keir, who replaced Mr Corbyn as Labour leader in April, said it had brought “a day of shame” for the party.
The co-chairman of the Conservative Party, MP Amanda Milling, has written to Sir Keir, saying: “You have claimed that Labour is ‘under new leadership’, but now is the moment to prove it – Mr Corbyn should be expelled permanently.”