The news comes two days after Saban's initial positive test and opens up the possibility that Saban could coach in Saturday night's marquee matchup against the Georgia Bulldogs.
In the school's statement, Allen said Saban was evaluated by team physician Dr. Eugene Robinson on Friday and remains asymptomatic.
"We are continuing to follow the SEC Return to Activity and Medical Guidance Task Force Protocol for testing asymptomatic positives," Allen said. "A PCR test was repeated Thursday by the SEC appointed lab and was negative."
Under Southeastern Conference protocols, if Saban tests negative two more times -- each 24 hours apart -- he would be considered a false positive and would be allowed to return to full activity.
The 68-year-old Saban will continue to be tested daily by the Alabama medical staff, meaning he could test negative Friday and Saturday and be on the sideline for the Crimson Tide's game against Georgia.