"The suspension of the Kuwait football association is lifted," FIFA's president Gianni Infantino announced alongside a Kuwaiti official in a short video shared widely on Twitter.
Infantino was visiting Kuwait to announce the eagerly anticipated decision.
The suspensions meant Kuwait missed out on the qualifiers for the 2018 World Cup and the 2019 Asian Cup, and before that the Rio 2016 Olympic Games.
On Sunday, the Kuwaiti parliament passed a new law in line with FIFA's requirements and on Tuesday, Kuwaiti clubs elected the head of a new football federation.
Analysts say the crisis in Kuwaiti sports was the result of a power struggle within the ruling elite.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)