The International Judo Federation (IJF) suspended Iran from all international participation indefinitely, which made Iran's start of the judo competition at the Olympics uncertain.
Cas writes in his judgment that even though the Iranian Judo Federation, which had appealed the suspension, was guilty of several rule violations, there is no support in the IJF's own rules for the decision to suspend.
Cas has therefore overturned the verdict and sent the matter back to the IJF's disciplinary committee for a possible new decision.
It was during the 2019 World Cup that the reigning world champion in the 81-kilo class, Saeid Mollaei, was pressured by Iran's Olympic Committee and government to advance to the quarterfinals and semifinals to avoid a final against Israel's Sagi Muki.
Mollaei first ignored the order, but then lost in the semifinals.
He and his family received so many threats from their homeland that the 27-year-old fled to Germany and later became a Mongolian citizen.
Since the Iranian revolution in 1979, Iran has refused to recognize Israel as a state.