Povetkin had two WBC fights called off last year after positive doping tests, including a planned heavyweight title bout against Deontay Wilder.
The Russian was banned from WBC-sanctioned fights after the second failed test, but he appealed.
The WBC says it has cut that ban to one year from his last positive test for ostarine in December 2016, leaving Povetkin free to fight from next month.
However, Povetkin will have another year of probation and must still pay his fine and face extra testing.
Povetkin is to face Christian Hammer in a WBO-sanctioned bout next month, a fight which wasn't affected by the WBC sanction.
“I promised that we would achieve justice for Povetkin. So, a few months ago we achieved justification from all organizations except the WBC, and now the WBC also sent us a letter saying that they will lift the lifetime ban on Povetkin,” the Russian’s promoter, Andrey Ryabinsky, wrote on Instagram.
“Starting December 6, he can officially conduct fights in the WBC, and from January will be returned to the official rating.”