Part of the stadium will not have to be closed for the second leg of the game.
At least 5,000 seats at the Wanda Metropolitano were ordered to be closed by Uefa on Monday.
That was done in response to the behavior of the fans from Atleti during the first leg in Manchester.
The punishment has been suspended after a request to the Court of Arbitration for Sport.
The request for security reasons was granted because of the potentially serious repercussions of trying to exclude 5,000 ticket holders from attending the match.
All members and fans with a season ticket or seat can attend the game.
It is not certain if the Uefa banner reading "#NoToRacism" has also been overturned.
Kevin de Bruyne's goal last week gave City a 1-0 lead.
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