The Rossoneri will be able to welcome supporters to the San Siro for the match with Udinese after the FIGC opted to delay the verdict over the initial sanction.
The club was hit with the initial sanction after alleged pejorative chants against southern Italians, with the Italian Football Federation (FIGC) deeming the offense should be treated in the same way as racial discrimination.
Milan opted to appeal the stadium ban issued by the FIGC, with CEO Adriano Galliani insiting that "territorial discrimination" should not be punished in the same way as racism.
Following the appeal to the FIGC Federal Court, the prosecution has confirmed via an official statement that it wants more time to examine the evidence over the issue, meaning the initial ban on fans for the game on Oct. 19 will now be postponed.
The issue over regional chanting proved divisive in Italy in recent days, with former Azzurri captain Fabio Cannavaro suggesting that offenders are motivated by "stupidity" rather than racism.