Phillips was banned indefinitely last week for an alleged off-field incident after Bayonne’s defeat to Toulouse on September 21.
But that decision has now been overturned after Phillips sat out the weekend derby with Biarritz.
Phillips is currently sidelined with a finger injury he picked up in training but could now return to action for the Amlin Challenge Cup clash with Modigliano on October 12.
“Mike has a meeting with the Board of the club and head coach, Christian Lanta, at the start of next week and they will talk about his suspension,” said a Bayonne spokesman.
“All the players have to be responsible and have a professional attitude at the club.”
The decision to lift his suspension is a timely boost for Phillips as Wales look ahead to the Dove Men Series when they take on Argentina, Samoa, New Zealand and Australia in November and December.
Phillips will be hoping to add to his current tally of 67 caps when Wales aim to bounce back from their summer heartbreak Down Under.
