Cricket Australia initially said that Warne should be prevented from playing any type of cricket while serving his suspension.

But the Australian Cricketers' Association challenged the CA's finding on behalf of Warne and the two parties agreed to take the case to an independent arbitrator, barrister Peter O'Callaghan.

CA and the ACA released a joint statement on Sunday, announcing O'Callaghan had ruled in favour of the ACA, effectively clearing the way for Warne to resume playing.

"He has advised that the Memorandum of Understanding provision does not give Cricket Australia this right but has not provided any further details at this stage," the statement read.

"Cricket Australia and the ACA have each agreed to be bound by the decision."

Warne, the most successful leg spinner in test history, was banned from cricket for 12 months after testing positive for diuretics in February.