Feghouli was shown a straight red card by referee Mike Dean following a collision with Phil Jones in the first half on Monday night and faced a three-match ban.
But the Algerian will be available for Slaven Bilic’s side against Manchester City in the FA Cup tomorrow night after the red card was overturned.
A club statement read: “West Ham United can confirm a Football Association Regulatory Commission has upheld the club’s claim for wrongful dismissal in respect of the red card shown to Sofiane Feghouli against Manchester United.”
Karren Brady had earlier confirmed the successful appeal on Twitter, saying: “I have just received a call to confirm Sofiane will not be required to serve a three match suspension and is eligible to play Friday.”
Dean, meanwhile, will be back in the spotlight in a televised FA Cup clash on Sunday despite criticism of his handling of Monday’s game at the London Stadium.
The 48-year-old has been handed the third-round tie between Tottenham and Aston Villa which will be shown at 4pm on BBC One.
Dean showed his fifth red card in 15 matches this season after just a quarter of an hour following Feghouli’s challenge with Jones.
Although Jones came off worse, Bilic felt the United defender had committed the more dangerous tackle.
The dismissal was Dean’s 25th since the start of the 2013-14 season, with that total and his season’s current tally the highest by any current Premier League referee.
Meanwhile, Manchester City midfielder Fernandinho has failed with an appeal against the red card he received in Monday’s match against Burnley, the FA has announced.
Brazilian Fernandinho was dismissed for a third time in six appearances in a match that City won 2-1 after goals from Gael Clichy and Sergio Aguero.
He was ordered off for a two-footed lunge on Johann Berg Gudmundsson, and receives a four-match ban rather than the usual three games as it was his second Premier League dismissal of the campaign.
His other red came in the Champions League against Borussia Monchengladbach.
In a statement released by City, the FA said: “Fernandinho will serve a four-match suspension with immediate effect after his claim of wrongful dismissal was rejected today following an independent regulatory commission hearing.”