Cricket South Africa announced late on Tuesday that Phangiso's action for all deliveries had been found to fall within the parameters of international regulations.
The new assessment after tests on Monday came a week after it was announced that he had been banned from bowling in domestic cricket after all his variations had been found to exceed the 15 degrees of tolerance allowed.
The first tests were conducted on February 27. Before undergoing the latest tests, Phangiso worked with South African spin bowling coach Claude Henderson and high performance manager Vincent Barnes in an effort to correct his action.
"While it is tempting to play him, both Aaron and I feel it's best that he takes a little more time to work on and gain confidence with his new adjustments," said Domingo.
"We have an important few weeks coming up in India so it's going to be important to have him in the right frame of mind both mentally and physically.
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