The way was cleared last night for Independent Mayo TD Beverley Flynn to be readmitted to Fianna Fáil by the party’s national executive last night.
She will now able to vote in next week's election for the new party leader.
She was expelled from the parliamentary party following her failed libel action against RTÉ. Ms Flynn lost a High Court action against RTÉ, chief news correspondent Charlie Bird and farmer James Howard.
The case was in relation to claims that she assisted clients of National Irish Bank, for which she had worked, to evade tax.
Her long-running legal battle with RTÉ ended last October when she paid €1.2 million of the station’s legal fees. In total, Ms Flynn amassed a debt of €2.8 million with RTÉ. The station settled for €1.2 million after it had taken bankruptcy proceedings against her.
When questioned today by reporters about why Ms Flynn was being readmitted, Taoiseach Bertie Ahern said it had always been the party's intention to allow her readmission once she had addressed her difficulties.
Mr Ahern said: "We always said that when they would be dealt with that we would be able to she would be able to return to that and thankfully many months ago that was sorted out so it an appropriate time for her to come back."
Speaking on RTE radio this afternoon Ms Flynn said she regretted the outcome of her action against the broadcaster and "a lot of what happened over the last number of years".
"I'm very keen at this stage to focus now on the future and that future I'm glad to say now is obviously back in the Fianna Fáil party where I hope tpo able to work both locally and nationally," she told the News at One.
Mr Ahern said after he was re-elected last year, that he envisaged she could be given a junior ministry in the future. And in today's interview Ms Flynn referred to what the Taoiseach had said in the past and again referred to working "nationally".
She said it would be an honour for her and her constituents if she were given a ministerial position.