Iraq will now be able to face Australia on Sunday in a qualification match for the 2010 World Cup. The two teams meet again six days later.
FIFA suspended Iraq on Monday after the Iraqi government dissolved the country's National Olympic Committee as well as various sports federations. Iraq then sent a letter to FIFA with Baghdad confirming that Iraqi Football Association was exempt from the dissolution decree.
FIFA also announced that it still has concerns about political interference in Iraqi football and the decision to lift the ban is a conditional and provisional one.
Iraq, with one point from two Group One games, need a result in Brisbane. Australia sit in top spot with four points.