Brazil's home match against Argentina last year was halted when health officials entered the field a few minutes after kick-off.
FIFA has agreed to cancel the World Cup qualifier between Brazil and Argentina.
The fixture in September was stopped shortly after kick-off when Brazilian health officials entered the field claiming four Argentina players had broken COVID-19 protocols.
FIFA was pushing for the clash to be rescheduled for next month, despite the fact the game was essentially meaningless with both teams having already qualified for the World Cup in Qatar later this year.
The confederations of Brazil and Argentina both opposed FIFA's demand, with the case taken to the Court for Arbitration of Sport (CAS) where all three parties agreed to the deal.
Brazil's Tite and Argentina's Lionel Scaloni argued the risk of injuries and suspensions were too high for the game to be played, which would have occurred just two months before the World Cup is scheduled to begin.
With the agreement, both South American teams are free to schedule friendlies against opponents of their choosing for their World Cup preparations – where they will be looking to end Europe's dominance on the world stage.
Brazil have not won the tournament since 2002 and were humiliated by Germany in the semi-finals when hosting the tournament in 2014, where Argentina were subsequently beaten in the final.
Argentina are alongside Mexico, Poland and Saudi Arabia in Group C, while Brazil are in Group G with Serbia, Switzerland and Cameroon.