Salman Khan, 49, was convicted on May 6 by a lower court of culpable homicide.
The court sentenced the Bollywood star to five years in prison for killing Noor Ullah Khan by driving over him as he slept on a pavement. Four others were injured.
Many expected Salman Khan to be jailed on May 8 but the court extended bail. A final appeal hearing is due in July.
During his trial, Salman Khan argued his driver had been behind the wheel, but the judge said it was the actor who had been driving, under the influence of alcohol.
Within hours of his conviction on May 6, Salman Khan approached the high court and was given interim bail for two days, meaning he stayed out of jail.
Salman Khan – who had faced a possible 10-year jail term – then went home, where a number of Bollywood stars met him.
Correspondents say today’s ruling will be a huge relief for Salman Khan whose sentencing had divided Indians.
While Salman Khan’s friends and colleagues in Bollywood and many fans and others spoke out in his support, others called for him to be treated like any other citizen of the country who had committed a crime.
On May 8, Salman Khan’s fans began celebrating outside the court and outside him home.
Salman Khan is one of Bollywood’s biggest stars, appearing in more than 80 Hindi-language movies.
The case has gripped Bollywood and India for years – and looks set to continue as lawyers argue in the appeal courts.
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