Kuhnemann was informed on Wednesday night his action had been deemed legal following testing in Brisbane on February 15.
The news will come as a significant relief to the 28-year-old, who had faced the prospect of needing to reconfigure his action if he failed the test.
It is also a serious boost to the Australian Test team, with Kuhnemann likely to form part of their squad for this year's tour of the Caribbean.
"We are pleased for Matt that this matter is now resolved," Cricket Australia's boss of national teams, Ben Oliver, said.
"It has been a challenging period for Matt, however, he has carried himself exceptionally well.
"He has had the full support of Australian cricket and he can now move forward to the next phase of his international career with great confidence."
Kuhnemann was the star of Australia's 2-0 series sweep of Sri Lanka earlier this month, bowling through the pain of a fractured thumb to claim 16 wickets at an average of 17.18.
But it was during the second Test of that tour when he was reported, with umpires not convinced by the legality of his action.
That prompted Kuhnemann to face more than an hour of biomechanical testing in Brisbane, while hooked up to markers on his arm.
The result of those tests have now shown the left-arm spinner does not extend his elbow by more than the 15 degrees allowed during delivery on either his stock ball or any variations.
Australian officials were shocked when Kuhnemann was reported, given he had played eight years of professional cricket without requiring tests.
Fellow players, including Indian great Ravichandran Ashwin, have previously defended Kuhnemann's action, claiming his wrist movement creates an optical illusion.
Sri Lanka's spin bowling coach, Piyal Wijetunge, is also reported to have made a similar observation to his batters when they queried Kuhnemann's action in the recent series.
"An interesting feature of his action is his loading," spinner Ashwin said on his YouTube channel in 2023.
"For Kuhnemann, his wrist breaks during his loading.
"So sometimes it will look like there is an elbow extension. There is nothing like that in his action. But there is wrist involvement, for sure.
"Because of this wrist involvement, the ball will come down faster."
Kuhnemann had skipped Tasmania's most recent Sheffield Shield match to allow his thumb to heal, but he is now free to play against Queensland next Thursday.
The tweaker looms as a big part of Australia's puzzle for India in 2027, given the point of difference he offers as a left-arm spinner.
Kuhnemann took nine wickets at 31.31 on his debut tour of India in 2023, including a five-wicket haul in Australia's sole win at Indore.
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