Paediatrician David Southall has had his ban from working as a doctor lifted.
The General Medical Council (GMC), who struck off Dr Southall for serious professional misconduct last December, admitted at the High Court it was wrong to apply 2004 guidelines retrospectively in enforcing the ban.
Dr Southall is still banned from undertaking child protection work.
Last December, the GMC ruled that Dr Southall abused his position by falsely accusing a mother of murdering her son by hanging him.
However, the GMC based its decision on rules introduced in 2004 which should not have applied as the allegations centred on events prior to 2004. Had the GMC correctly applied the earlier rules, Dr Southall would not have been banned.
In a statement the GMC said: We can confirm that the immediate suspension imposed on Dr David Southall's registration has been lifted by mutual consent.
"The GMC supports the application to lift the immediate suspension, pending the outcome of the appeal against the panel's direction to erase Dr Southall's name from the medical register.
"Dr Southall's registration will be subject to previously imposed conditions which prevent him undertaking any child protection work."