Regragui was suspended for four games and fined $5,000 by the Confederation of African Football (Caf) on Wednesday, with two games of that ban suspended for one year.
Caf confirmed an appeal by the Moroccan football federation (RMFF) against its decision had been partially successful, and that it had overturned Regragui's ban and fine.
Morocco are among the favourites to take the Afcon 2023 title after their heroics at Qatar 2022 when they became the first African team to reach the semi-finals of a World Cup.
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