People close to the matter said the country's second-largest mobile phone company also withdrew a Supreme Court appeal challenging interim relief granted by the High Court stopping hearing proceedings against Muchenje.
Reasons for his reinstatement could not be immediately established yesterday.
Muchenje was expected to appear before Retired Justice Moses Chinhengo to answer to several charges including incompetence, theft, habitual and substantial neglect of his duties as the CEO of NetOne in March this year.
He was suspended on February 20, alongside acting chief finance officer Tinashe Severa.
Muchenje then approached the High Court seeking nullification of his suspension in which an interim relief order was granted to stop the hearing on March 11.
He argued that the meeting, which resolved to relieve him of his duties was not properly constituted.
The hearing could not, however, took place after Muchenje threatened to sue NetOne.
"He is back at work, all charges dropped," said one source who declined to be named.
Muchenje was not immediately available for comment.
Board member and FMC CEO, Ranga Mavhunga, was last week arrested and released on $10 000 bail for perjury or lying under oath.
The alleged lie was made when Mavhunga and acting chairperson Susan Mutangadura, a legal practitioner, filed opposing affidavits in a case in which Muchenje sought his suspension nullified because the resolution to suspend him was not unanimous since Dr Douglas Mamvura, a bona fide director was not involved in such decision.
Dr Mamvura was appointed on NetOne board on October 28 last year, but was never invited for a single board meeting even though the board was aware of his appointment.
This is the second time Muchenje is reinstated.
He was first suspended in August 2018 before being reinstated in February 2019.
