Malaga made it to the quarter-finals in their first ever participation in the Champions League this season, but are currently banned from competing in Europe next season should they qualify as UEFA found in December they were in breach of European football governing body's new financial fair play rules.
They were given until March 31 to show it had cleared those overdue debts to avoid being banned for another season.
However, the club confirmed on Thursday that UEFA had now accepted they have complied with those requirements.
"Malaga football club has today received communication from UEFA that its financial control committee has confirmed that, after an analysis of the situation of the Martiricos club on 31 March, 2013, it leaves without effect the second conditional year of suspension against the Andalusian club," said a statement on the club's website.
The club are also appealing the initial decision taken by UEFA to the Court of Arbitration(CAS) for Sport to get the entire ban overturned and have been awarded a licence from the Spanish Football Federation to play in Europe next season should that appeal be successful.
"This decision and the awarding of the licence ratify what the club already expressed when our compliance was put in doubt," said Chief Executive Officer Vicente Casado.
"We have worked and we will continue to do so because we are very optimistic looking to the future."
A decision from the CAS is expected to be announced on June 4.