"As is permitted by Article 34 (2) of the Procedural rules governing the UEFA Club Financial Control Body, as well as Articles 62 and 63 of the UEFA Statutes, AC Milan appealed this decision to the Court of Arbitration for Sport, who confirmed the Chamber's view that there had been a breach of the regulations".
Following a hearing with the Italian club on Thursday, the CAS released a statement on Friday in which it said that while UEFA's decision to impose sanctions was correct, these needed to be more "proportionate" and exclusion was too severe.
CAS' annulment of the ban did not officially act as a reinstatement to the competition, because they confirmed Milan's failure with respect to the break-even regulations and urged UEFA to hand down a "proportionate disciplinary measure".
"The panel chose to refer the case back to the adjudicatory chamber of the UEFA CFCB because the club had requested that the case be referred back to UEFA and because it considers that the adjudicatory chamber is in a better position than the CAS panel to issue a new proportionate disciplinary measure on the basis of the current financial situation of the club".
Uefa had issued the punishment after deciding Milan had breached a Financial Fair Play requirement to break even after spending £200m on transfers.
Li Yonghong, who bought Milan from Silvio Berlusconi past year with the aid of a €303 million loan from Elliott Management, did not offer the required assurances to guarantee their financial future.
"As a result, the chamber chose to exclude AC Milan from the 2018-19 Europa League".
It has been reported that their stronger financial standing helped Milan succeed in their appeal against UEFA's decision.
Milan were barred from the next European competition they qualified for, a suspension that would have kicked in straight away since they had secured a place in the 2018-19 Europa League.
Milan were told in June that UEFA had taken action against their alleged breaches of break-even requirements, barring them from competing in Europe's second-tier competition for next season.