Mike Tindall has been reinstated to the elite England player squad and had his fine reduced on appeal.
The Rugby Football Union (RFU) said that while his behaviour at the Rugby World Cup had been "unacceptable", "mitigating factors" had not been taken into account.
Tindall, 33, has also had his £25,000 fine cut to £15,000.
He was punished after the controversial night out in Queenstown that followed England's opening win over Argentina.
The Rugby Players' Association (RPA) welcomed the decision in a statement, saying: Whilst we still believe the fine is excessive and disproportionate to the factual events of that night in Queenstown, we are relieved that Mike has been reinstated into the full England EPS Squad.
Tindall, who is married to the Queen's granddaughter Zara Phillips, heard his behaviour described as "unacceptable" and was told he had misled England management by not telling them he went to another bar.
During the World Cup CCTV pictures of Tindall with a woman in a bar were published in newspapers, but he initially denied claims he had gone to a second bar with the woman.
But in announcing his decision following an appeal hearing held last week, acting RFU chief executive Martyn Thomas said he felt mitigating factors did not appear to have been taken into account "to the extent that they might otherwise have been".
Mike did not intentionally mislead the RFU team management when he stated that he could not remember where he was on the night of September 11, and that he was relying on other people's versions of events which were relayed to him," said Thomas.
There was no evidence of any suggestion of sexual impropriety of any nature with the woman in question, and we accept the fact that she is a family friend who he has known for a long time.
But Thomas said while they had reduced the fine and allowed him back in the elite player squad, Tindall's behaviour had fallen "way below that to be expected of somebody of his calibre and experience."
The Rugby Football Union (RFU) said that while his behaviour at the Rugby World Cup had been "unacceptable", "mitigating factors" had not been taken into account.
Tindall, 33, has also had his £25,000 fine cut to £15,000.
He was punished after the controversial night out in Queenstown that followed England's opening win over Argentina.
The Rugby Players' Association (RPA) welcomed the decision in a statement, saying: Whilst we still believe the fine is excessive and disproportionate to the factual events of that night in Queenstown, we are relieved that Mike has been reinstated into the full England EPS Squad.
"We have always maintained that the original judgement was misguided and mishandled and it is our assertion that Mike has been unfairly treated as a scapegoat on this matter."
The initial sanction came after RFU elite rugby director Rob Andrew and legal and governance director Karena Vleck took evidence earlier this month.Tindall, who is married to the Queen's granddaughter Zara Phillips, heard his behaviour described as "unacceptable" and was told he had misled England management by not telling them he went to another bar.
During the World Cup CCTV pictures of Tindall with a woman in a bar were published in newspapers, but he initially denied claims he had gone to a second bar with the woman.
But in announcing his decision following an appeal hearing held last week, acting RFU chief executive Martyn Thomas said he felt mitigating factors did not appear to have been taken into account "to the extent that they might otherwise have been".
Mike did not intentionally mislead the RFU team management when he stated that he could not remember where he was on the night of September 11, and that he was relying on other people's versions of events which were relayed to him," said Thomas.
There was no evidence of any suggestion of sexual impropriety of any nature with the woman in question, and we accept the fact that she is a family friend who he has known for a long time.
"Mike expressed deep regret during the appeal meeting about his behaviour, and that he had apologised to [former England manager] Martin Johnson and the team for the events which unfolded as a consequence."
But Thomas said while they had reduced the fine and allowed him back in the elite player squad, Tindall's behaviour had fallen "way below that to be expected of somebody of his calibre and experience."
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