The 27-year-old NFL running-back was handed an indefinite ban in September when a video emerged of him punching his then-fiancée (now wife) Janay Palmer in the face.
Raymell Mourice Rice was released by the Baltimore Ravens, but he is now allowed to play should he sign for a new team.
The appeal, heard on November 5 but announced on November 28, had to decide if the NFL overstepped its authority.
American football’s governing body had modified Ray Rice’s two-game suspension, making it indefinite after the video of the incident went public.
Ray Rice has been eligible to sign for a new team since his ban was put in place, but he had not yet accepted a contract.
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