James Gunn previously helmed the first two instalments of the Marvel Cinematic Universe (MCU) series, "Guardians of the Galaxy," and was on board to direct the third before he was axed by Disney following the emergence of old offensive Twitter posts in which he joked about paedophilia, homophobia and rape.
But after fans and fellow stars rallied in support of Gunn, Deadline has revealed he has now been reinstated as the director for the feature.
And in a Twitter post - which marked the first time he had used the site since apologising for his past actions in tweets posted in July 2018 - confirming the news, Gunn wrote: "I am tremendously grateful to every person out there who has supported me over the past few months. I am always learning and will continue to work at being the best human being I can be.
"I deeply appreciate Disney's decision and I am excited to continue making films that investigate the ties of love that bind us all. I have been, and continue to be incredibly humbled by your love and support. From the bottom of my heart, thank you. Love to you all."
The movie was originally due to start filming early this year but had been pushed back following Gunn's exit.