Australian Chef de Mission Kitty Chiller has overturned a ban on Emma McKeon attending the closing ceremony.
The swimmer, who won a gold, two silvers and a bronze in Rio, had been banned from attending after failing to notify Australian swimming officials she would not be returning to the Olympic village after a night out.
She spent the night with Swedish swimming friends to avoid having to return to the village on her own.
Fellow swimmer Josh Palmer was also banned after being delivered to the Australian consulate by two local businessmen, disoriented and missing his phone and wallet.
Both swimmers were also confined to the village between 8pm and 8am for the rest of the Olympics and a curfew of 2am was placed on the whole Australian team.
The Sydney Morning Herald has reported McKeon met with Chiller at the Deodoro Stadium on Friday night.
In a brief press conference this morning, Australian time, Chiller said McKeon would be allowed to attend.
There has been strong support for McKeon to be allowed to attend the ceremony, with former Olympic swimmer Melanie Schlanger starting an online petition calling for her to be allowed to go.