Kabylie were given the two-year suspension by CAF following the death of striker Albert Ebosse after a match against USM Alger in August 2014.
Ebosse was killed by an object thrown from the crowd, with CAF's executive committee banning the club from their continental competitions in 2015 and 2016.
However, the Court of Arbitration for Sport (CAS) confirmed on Wednesday that it has ruled in favour of the club's immediate appeal - stating it did not comply with CAF rules.
"The CAS found that the disciplinary proceedings conducted by the CAF authorities did not comply with the rules of the CAF," read a statement on CAS' website.
"The challenged decision was taken without the representatives of the club JSK having been heard or even informed of the procedure in progress.
"The appeal of JSK is therefore upheld and the decision of the Executive Committee of CAF is annulled with immediate effect.
"Since JSK did not specifically request to be reinstated in the CAF Champions League, the CAS has not been able to make a decision on this point, a decision that would also be likely to affect other clubs."
