The far-right leader had been found guilty of misappropriating public funds by a court last March.
Her political future had been on the line as a Paris appeals court ruled on her eligibility for the next election.
Judges upheld the earlier court judgement that she was guilty of misappropriating EU funds and ruled she is ineligible to hold public office for 45 months, but suspended this for 30 months.
The ruling clears the way for Le Pen to run in the 2027 presidential election, but with an electronic bracelet that tracks her movements.
Le Pen’s presidential hopes had been in limbo since March 2025, when she received a five-year ban from public office for embezzling more than €4m (£3.4m) from the European Parliament.
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