Luiz Felipe Scolari has had a four-game ban for improper conduct reduced to two by Uefa after an incident in Portugal's 1-1 draw with Serbia on 12 September.
Scolari will step down as Portugal coach in July 2008
The Portugal coach was involved in a scuffle with opposition defender Ivica Dragutinovic after the final whistle.
However, he will now only serve a ban until 20 November, meaning he can return for the team's last Euro 2008 qualifier against Finland the next day.
Scolari will still have to pay a fine of 12,120 Euros (£8,479) for "assault".
Uefa, European football's governing body, said Scolari - who will not be able to go into the dressing room or be pitch-side under the terms of the ban - has 10 days to appeal against the decision to the Court for Arbitration in Sport.
Sevilla star Dragutinovic, meanwhile, has been banned for two matches for his part in the incident.
Scolari appeared to lash out after Dragutinovic was sent off - afterwards claiming the defender insulted his family - but denied making any contact.
"Words in Spanish directed at my family, I understand perfectly well," he said.
"As such when I reacted, it was the wrong reaction but sometimes even rational and normal people err."
Dragutinovic will miss Serbia's qualifying games in Armenia and Azerbaijan in October.
"It was obvious that the Portuguese lost their cool because they weren't happy with the result," said Serbia coach Javier Clemente.
"I can't understand how a coach who has won the World Cup cannot stand to lose. If he isn't capable of doing this he should change jobs."
Portugal have drawn their last three qualifying games and fallen off the pace in their group.
They lie third, four points shy of Poland in top spot, and having seen Serbia draw level with an 88th-minute goal from Branislav Ivanovic the setback clearly inflamed Scolari.