According to Agence France Presse, AFP, this was announced on Tuesday.
Fury has been cleared to fight again immediately, subject to receiving a licence, after getting a two-year ban which has been backdated to December 2015.
“In recognition of the respective counter-arguments and the risks inherent in the dispute resolution process, each side has accepted a compromise of its position,” a statement released by UKAD read.
The 29-year-old has not fought since his shock defeat of Wladimir Klitschko to win the WBA, WBO and IBF heavyweight titles in November 2015.
Fury tweeted: “Guess who’s back? #returnofthemac”.
Fury and his cousin and fellow heavyweight fighter Hughie, 23, tested positive for the banned steroid nandrolone in February 2015.
The pair, however, were not charged by UKAD until June 2016, by which time Tyson Fury had beaten Klitschko.
Four months later, the British Boxing Board of Control suspended his licence after he had given up his world titles to focus on recovering from mental health problems.
Both Hughie and Tyson Fury have strongly denied the nandrolone charge, claiming the positive test was a result of eating wild boar that had not been castrated.
The Fury case has been complicated by several other factors, though, as Tyson Fury failed a test for cocaine in September 2016 and later admitted using the recreational drug to help deal with depression related to his injury and UKAD problems.
“The anti-doping rule violations based on the reported presence of elevated levels of nandrolone metabolites are upheld, the refusal charge is withdrawn, Hughie and Tyson Fury each receive a two-year period of ineligibility,” the UKAD statement continued.
“The two-year period of ineligibility is backdated to 13 December 2015, and therefore expires at midnight on 12 December 2017.”
UKAD added that the two fighters’ results from February 2015 had been disqualified, but that later results, including Fury’s victory over Klitschko, would still stand.
IBF and WBA champion Anthony Joshua’s promoter Eddie Hearn said in October he wants to see his fighter take on Fury in an all-British showdown next year.
Fury tweeted on Tuesday: “@anthonyfjoshua where you at boy? I’m coming for you punk ent no1 blocking my path now!”