Renault has won its appeal against exclusion from the European Grand Prix and will be allowed to take its place on the grid for this weekend's race in Valencia.

The team had been barred from competing in the event after it was found guilty of releasing Fernando Alonso from the pits during the Hungarian Grand Prix knowing the Spaniard had a loose wheel on his car.

Having failed to inform Alonso of the issue, the double champion returned to the track but then lost the wheel cover from his front right wheel mid-way round his out lap, and then the wheel itself later in the lap.

Coming on the same weekend that Felipe Massa was injured by debris from another car and week after the death of Henry Surtees in an accident caused by an errant wheel at Brands Hatch, race stewards took the decision to suspend Renault from the following race, which takes place this coming weekend in Alonso's native Spain.

Renault elected to appeal to the FIA Court of Appeal in an attempt to take part in the race, with the Court meeting today [Monday] to hear the case.

While a verdict wasn't expected to be delivered until Tuesday, the FIA has now confirmed that Renault's appeal has been successful, despite the team admitting it had breached the Sporting Regulations in releasing Alonso from the pits.

However, having questioned the severity of the penalty, Renault has instead been hit with a reprimand and a fine of $50,000 but will be free to race.

The FIA is expected to announce the reasons for its decision in the coming days.

With it now confirmed that Renault will be in action in Valencia, an announcement is also expected on who will fill the second seat within the team after the departure of Nelson Piquet Jr during the summer break.

Test driver Romain Grosjean is widely expected to be confirmed in the role.