"The report after tests on Malik's action cleared him and it is a reprieve for him," Pakistan Cricket Board director of operations Salim Altaf told AFP on Monday.
Malik's bowling action was reported as "illegal" for a third time during the first Test against England at Multan last month. He was sent to Australia for tests on his bowling action early this month.
Besides Malik, the bowling action of paceman Shabbir Ahmed was also questioned during the Multan Test, but a report on Ahmed's action is still awaited, Altaf said.
The International Cricket Council (ICC) introduced a new process to deal with illegal bowling actions in March this year which says that no bowler is cleared for good.
A bowler undergoes biomechanical analysis tests which are conducted by experts appointed by ICC on his questioned action and if his action is found beyond limits he is suspended from bowling at international level.
If a bowler is reported again within two years of his previous suspension he would be automatically banned from international cricket for a minimum of one year.
Off-spinner Malik was first reported in 2002 and for a second time in October 2004.
Under the new ICC rules all bowlers are allowed to straighten their bowling arms by 15 degrees. Any transgression come under illegal bowling.