The Manchester City defender was dismissed for a tackle on Jack Wilshere in the second half but will not face a ban following a successful appeal by the Premier League champions
The Belgian center back was sent off by match official Mike Dean for a tackle on Jack Wilshere in the second half at the Emirates Stadium.
"An Independent Regulatory Commission has today upheld a claim of wrongful dismissal regarding Manchester City’s Vincent Kompany," read an FA statement released on Tuesday.
"As a result, Kompany’s three-match suspension has been withdrawn with immediate effect."
Manchester City boss Roberto Mancini had indicated after the game that the club would protest the decision before an appeal was officially lodged on Monday.
"This is not a red card, absolutely not," the Italian told Sky Sports. "He has one foot to take the ball, the other is left. I think that the referee made a mistake there."
Arsenal was already down to 10 men following Laurent Koscielny's dismissal in the early stages for hauling down Edin Dzeko in the Gunners' penalty area.