The 28-year-old was banned from using the distinctive bat after it discoloured the white ball during the derby between Sydney Thunder and the Sydney Sixers last week.
Cricket Australia (CA) reversed the ruling on Tuesday after assurances that the bat had been modified with the addition of a "clear laminate cover" to prevent the problem recurring.
"We're now satisfied that the bat will not compromise the integrity of the game by discolouring the match ball and we have granted approval for Andre to use the bat in any future BBL matches," said BBL chief Anthony Everard.
The decision fits with the BBL's embrace of novelty to attract and entertain crowds but it appears the arrival of the touted Dec. 25 match might have to wait until the 2018-19 season.
Andre Russell's bat banned for its colour
Christmas Day has traditionally been a day of rest even for professional sportsmen and women in Australia but CA chief James Sutherland, the driving force behind day-night test cricket, is clearly open to the idea.
"I'm not sure but I think we'll be ready for it [next year]," he told ABC Radio on Tuesday. "I think there is a growing sentiment that it is a possibility. We need to think about the right venue for it and we also need to consult widely.
"I think it is an opportunity, and it'll be a good thing for the game and for cricket fans around the country."
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