Shahid Afridi was fined 4.5 million rupees ($52,300) on Thursday for violating the Pakistan Cricket Board's code of conduct, but was cleared to play abroad.
"Shahid Afridi regretted and pleaded guilty," the PCB's legal adviser Taffazul Rizvi said after a four-hour meeting of the board's disciplinary committee in Lahore.
"Since he has been fined and also agreed to pay, his NOC (No Objection Certificate) for Hampshire is being restored."
The PCB had suspended his central contract and revoked his NOC, stopping him from playing for Hampshire in the English county Twenty20 event.
Afridi said he admitted his mistakes but did not apologize to the committee members.
"Whatever they have fined me I am happy with it," he said. "I came here to get the NOC."
But Afridi, who led Pakistan to the World Cup semifinals in March, said he will stand by his decision to retire from international cricket.
"I am in no mood to play (international) cricket at the moment, will see in the future," he said.
Afridi had been expected to get the required clearance to play abroad after he met PCB chairman Ijaz Butt on Tuesday - a meeting which was reportedly arranged by key politicians of the country.
Afridi's tussle with the PCB officials began when he criticized team management on his return home from Pakistan's 3-2 ODI series win against West Indies.
The PCB removed the enigmatic allrounder as captain for the two-match ODI series against Ireland and it later emerged that team coach Waqar Younis and manager Intikhab Alam had been critical of the 31-year-old Afridi in their report of the West Indies tour.
A frustrated Afridi announced his retirement from international cricket in protest.
Afridi challenged the PCB's disciplinary measures in the Sindh High Court, but reportedly both Butt and Afridi were convinced by politicians to agree an out-of-court settlement.
Afridi eventually withdrew his petition on Wednesday and a day later, he appeared before a three-member disciplinary committee, which was assisted by Rizvi.
"Whatever was discussed inside will not be disclosed either by Afridi or by the cricket board," Rizvi said.
Former test opening batsman Mudassar Nazar said he was expecting a fine for Afridi after the allrounder met Butt on Tuesday but he said Pakistani politicians should not interfere in the administrative matters of the cricket board.
"Every politician jumps in whenever there's some controversy in the PCB, they should avoid doing it because they have more important work to do," he said.