The suspension prevented Guatemalan teams from participating in international competitions such as the Gold Cup, the Central American Games and the CONCACAF Champions League.
"FIFA has lifted the suspension that was imposed on the Guatemalan Football Association" Fedefut, it said in a statement on Thursday.
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The suspension "is lifted with immediate effect, restoring all its rights as a federation member of FIFA," Rios told a press conference. "It is a very happy day for us."
FIFA sanctioned Guatemala in October 2016 when it failed to authorize the normalization committee after an international corruption scandal that rocked world football.
Former Fedefut general secretary Hector Trujillo was the first person brought down in the scandal to be sentenced to jail, given eight months by a judge in New York in October for wire fraud.
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