Everton have been given back four points after an independent commission decided that their deduction should be reduced.
The Toffees will move from 17th to 15th in the Premier League table and are now five points clear of the relegation zone.
Everton were docked 10 points last December after they were found guilty of breaching the Premier League's profit and sustainability rules in the 2021/22 season.
The Merseyside club immediately appealed, declaring the punishment 'wholly disproportionate and unjust', and they have now finally learnt that the deduction has been reduced to four.
Everton have had their points deduction reduced from 10 to six
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However, Everton still have a second punishment looming after they were charged with another breach of financial rules in January.
They, along with Nottingham Forest, could be deducted points for the second charge and a hearing for that is still to take place.
Everton have released a statement, confirming they are 'satisfied' with the result of the first appeal.
The statement read: "Everton can confirm an Appeal Board has concluded that the points deduction imposed by an independent Premier League Commission in November be reduced from 10 points to six points, with immediate effect.
"While the Club is still digesting the Appeal Board’s decision, we are satisfied our appeal has resulted in a reduction in the points sanction.
"We understand the Appeal Board considered the 10-point deduction originally imposed to be inappropriate when assessed against the available benchmarks of which the Club made the Commission aware, including the position under the relevant EFL regulations, and the 9-point deduction that is imposed under the Premier League’s own rules in the event of insolvency."
Everton also stated they are happy that the appeal board overturned the view that they didn't act in 'utmost good faith'.
The statement continued: "The Club is also particularly pleased with the Appeal Board’s decision to overturn the original Commission’s finding that the Club failed to act in utmost good faith.
"That decision, along with reducing the points deduction, was an incredibly important point of principle for the Club on appeal. The Club, therefore, feels vindicated in pursuing its appeal."
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Everton made note of the second charge in their statement, which relates to the period ending 2022/23, saying they will work alongside the Premier League throughout that process.
The club said: "Notwithstanding the Appeal Board’s decision, and the positive outcome, the Club remains fully committed to cooperating with the Premier League in respect of the ongoing proceedings brought for the accounting period ending in June 2023.
"The Club is still considering the wider implications of the decision and will make no further comment at this time other than to place on record its thanks to our Fan Advisory Board and other fan groups throughout this process, and to all Evertonians for their ongoing support and patience."
Sean Dyche's Everton side have moved up two places in the Premier League
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Everton initially hit a rich vein of form after they were hit with the 10-point penalty, winning four matches in a row in December.
However, they haven't won a Premier League game since the last match in that run, a 2-0 win at Burnley on December 16.
Sean Dyche's side sat 17th in the table following Saturday's late draw away to Brighton, where Lewis Dunk scored a stoppage-time equaliser for the hosts.
However, they will now move up two places, with Everton now on 25 points from 26 matches.