Euro 2012 - Rooney ban reduced by one game
Rooney was originally banned for three games after kicking Montenegro's Miodrag Dzudovic in England's final qualifier but the Football Association appealed against the severity of the punishment.
After a hearing at UEFA headquarters in Nyon, Switzerland, on Thursday morning, the governing body announced that the third game of the three-match will now be suspended for four years.
If Rooney finds himself in disciplinary trouble for violent conduct in a UEFA international game then the third game will be activated.
Rooney will miss the Euro 2012 games against France and Sweden but is free to play in the final group game against Ukraine.
"The three-match suspension levelled against Wayne Rooney is now suspended, with the third game of the suspension, suspended for four years, so Wayne will be available for the final group game of the European championship against Ukraine," Adrian Bevington, the managing director of Club England, told reporters at UEFA's headquarters.
"It is effectively a two-game suspension with one carried over for a four-year period for the national team."
He added: "I am pleased to say we have had a very fair hearing from UEFA's panel and we are very pleased with what's happened today."
The FA accompanied Rooney to Switzerland for the hearing after he played in Manchester United's Champions League defeat to Basel on Wednesday night.
England manager Fabio Capello also travelled to the appeal along with the FA's legal support team.
It is believed the FA argued a three-match ban that affects games in the finals of a major tournament is a harsher sanction than a suspension of a similar length which would just affect matches in a qualifying tournament.
Dzudovic, the Montenegro player kicked by Rooney, also provided evidence on the England striker's behalf.
Meanwhile, Liverpool manager Kenny Dalglish has accused the FA of not setting a good example in successfully appealing Rooney's three-match international ban.
The Manchester United striker's UEFA suspension was reduced to two matches at the same time as Dalglish was addressing the media at a press conference.
The Scot is deeply unhappy at the treatment of one of his own players, Luis Suarez, both on and off the pitch.
Liverpool's Uruguay international, already facing a racism charge dating back to October, has been charged with misconduct after allegedly making an obscene gesture to fans following the 1-0 defeat at Fulham on Monday. And Dalglish believes the FA should look at their own actions before tackling other issues.
"I find it a bit strange the FA are supposed to be setting an example for things yet they appeal against Wayne Rooney's three-match ban," he said. "I don't think that's a good example to set."