Salem announced by the end of last season that he wants to leave for a Cairo club, citing his son's health as the main reason.
Ismaili consequently received offers from Ahli and Zamalek as they accepted the latter's bid, only for the Egypt international to reject the move, favoring the league champions.
He publicly hit out at the club's board, who eventually denied his Ahli's switch while vowing to impose severe sanctions against him.
Great value
"The board decided to overturn the sanctions on Salem and we are looking forward to having him settled with the team," Ismaili vice-chairman Hammad Moussa told a new conference.
"Salem is a player of great value for the club and we are glad to put an end to all the problems with him.
The news means that Salem could lead the Ismaili defense against Ahli on Sunday after he had missed the opening game defeat to JS Kabylie.
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