Uefa has confirmed AC Milan have been reinstated to the 2018-19 Europa League following the Court of Arbitration for Sport's (Cas) ruling that their ban was not proportionate to breaching Financial Fair Play regulations.
Milan had been banned from competition over FFP breaches
Milan were told in June that Uefa had taken action against their alleged breaches of break-even requirements, barring them from competing in Europe's second-tier competition for next season.
The club immediately launched an appeal to Cas, who ruled on Friday that Uefa's punishment was too harsh.
Cas' annulment of the ban did not officially act as a reinstatement to the competition, because they confirmed Milan's failure with respect to the break-even regulations and urged Uefa to hand down a "proportionate disciplinary measure".
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But Uefa has since released a statement on the situation and confirmed Milan – who finished sixth in Serie A last term and were runners-up in the Coppa Italia – will be allowed to compete in the competition next term, joining at the group stage.
The statement read: "Earlier this month, the adjudicatory chamber of the independent Club Financial Control body, chaired by Jose Narciso da Cunha Rodrigues, decided that AC Milan had breached the Uefa Club Licensing and Financial Fair Play Regulations; in particular the break-even requirement.
"As a result, the chamber decided to exclude AC Milan from the 2018-19 Europa League.
"As is permitted, AC Milan appealed this decision to the Court of Arbitration for Sport (Cas), who confirmed the chamber's view that there had been a breach of the regulations.
"However, the Cas noted that there were some important elements that could not properly be assessed by the adjudicatory chamber – most significantly the improvement of the club's financial situation as a result of the recent change of ownership.
"As a result, AC Milan is reinstated to the 2018-19 Uefa Europa League and the Cas has referred the case back to the adjudicatory chamber to decide on the appropriate disciplinary measure, in the light of these developments."