The Spanish Cycling Federation had banned Contador for a year after he tested positive for the performance-enhancing drug clenbuterol. The drug turned up in a urine sample Contador gave during a rest day of last year's Tour de France. He claimed the positive test was because he'd eaten contaminated food.
Also, the level of banned substance found in the sample was substantially below minimum standards considered to give a user of clenbuterol a competitive advantage.
However, the national federation last fall suspended Contador for a year. That penalty was rescinded Tuesday.
"It has been some very stressful months for me but throughout the case I have been totally available for all inquiries in relation to my case and all the way through I have spoken in accordance with the truth," Contador said.
Contador, who won the Tour de France in 2007, 2009 and 2010, could still face sanctions, however, if the International Cycling Union and World Anti-Doping Agency decide to take action.