Lawyers of 49-year-old Bollywood megastar argued at the High Court that their client's conviction should be overturned.
Judge Abhay Thipsay ruled the sentence would be suspended until an appeal was heard and set new bail terms for the B-Town superstar.
"The defence has raised pertinent points about the evidence presented by the prosecution which need consideration," the judge said.
"Also, the points based on which the culpable homicide conviction was passed needs examination," he added.
Salman would have to file for a fresh plea, the appeal is set to be heard in July. Till then he has to surrender his passport to the police, however, he will be able to travel abroad with prior permission, NDTV reported.
During the session, Judge Abhay questioned the court "why should his rights suffer when the appeal is still being heard?"
He further made comments pertaining to a notional custody, claims NDTV.
Read: Salman Khan sentenced to five years in prison in hit-and-run case
This put Salman's defence in an encouraging position as they awaited the decision of whether his bail would be extended or whether he would go to jail.
Further, the judge asked the prosecutor why the case should not be treated only as a case of rash driving. He was also reported to have told the public prosecutor that a sentence under seven years could be suspended, reported The Times of India.
He said, "It is not a case where the applicant is likely to abscond and both parties have no objection to hearing an appeal in a fast manner so the sentence is suspended until an appeal is disposed."
Following the bail verdict, Salman's lawyer Amit Desai said, "The prosecution has not established beyond doubt that it was my client who was driving that night."
As news of the sentence being suspended was announced, scores of fans were seen outside Salman's residence blocking roads and creating chaos.
It was further reported that both Ajay Devgan and Anupam Kher arrived at his residence to offer moral support prior to the decision being announced. Soon after, celebrities were spotted heading to Salman's apartment. He was not present during the bail verdict, his lawyers and sister, Alvira represented him in court.
Read: Salman Khan yet to receive regular bail
The Kick star was handed a five-year sentence by a Mumbai sessions court on Wednesday, and found him guilty of all eight charges pressed against him, including culpable homicide in the hit-and-run case.
News of the suspended sentence was a relief for Salman Khan's friends, family and fans and celebratory tweets soon followed.
https://twitter.com/Ime_n_mySalman/status/596571440305995776
https://twitter.com/vishal002/status/596571852224524288
https://twitter.com/beastoftraal/status/596572944203145216
https://twitter.com/sharmarishabh/status/596573938945167360
https://twitter.com/Ace_Of_Pace/status/596578093474533376
https://twitter.com/Parth_Dil_Se/status/596571742245556225
https://twitter.com/ieEntertainment/status/596578258583326720
https://twitter.com/drindrajeetrai/status/596578467904229376
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