Ulinzi will be allowed to play in the Cecafa club championship.
Kenyan champions, Ulinzi Stars, have been cleared to compete in the East and Central Africa club championship in Tanzania despite their three-year suspension from continental football.
The Confederation of African Football suspended the Kenyan club after it failed to honour its African Champions League fixture against Vita Club of the DR Congo in Kinshasa earlier this year.
The ban means that Ulinzi have forfeited their place in the 2005 Champions League.
But officials of the Council of East and Central African Football Associations (Cecafa) said on Sunday that Ulinzi are free to
compete in their club championship, which is scheduled to be held in Tanzania in February.
Ulinzi, who were the runners-up at the 2004 event in Rwanda, are expected to be joined by 12 other clubs at the 2005 event.
Other clubs scheduled to take part:
Rwanda: APR (holders) and Rayon Sport
Tanzania: Simba and Mtibwa
Uganda: SC Villa
Sudan: Al Hilal