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Sports and Olympics Minister Hugh Robertson has expressed disappointment at CAS's decision and called for tougher sanctions for doping offences in general.
Sprinter Dwain Chambers and cyclist David Millar are clear to be selected for London 2012 after the Court of Arbitration for Sport declared the British Olympic Association's lifetime ban on drugs cheats was not in compliance with the World Anti-Doping Agency code.
The British Olympic Association's (BOA) lifetime games ban on drug offenders has been overturned by the Court of Arbitration for Sport, CAS said in a statement.
The BOA asked CAS to mediate after the World Anti-Doping Agency (WADA) ruled the life ban did not comply with its global doping code which provides for a maximum two-year ban for a first offence.
The CAS statement said:
The sports nutritionist who became engulfed in the scandal that saw Dwain Chambers banned says the sprinter deserves a second chance. Victor Conte was sent to jail for his role in the steroid business. He said a lifetime Olympic ban sends out the wrong message.
Olympic silver medallist Iwan Thomas told ITV1's Daybreak he believed Dwain should not be allowed to compete, but the current rules give him a strong case to take part.
Olympic athlete Roger Black has criticised the ruling allowing sprinter Dwain Chambers to compete again after he admitted taking drugs.
He says anyone proven to have taken drugs should face a lifetime ban. Black says he's not surprised by the decision but says it sends out the wrong message.
Ten days ago ITV News Sports Editor Steve Scott reported on why British Olympic bosses don't want Dwain Chambers running at the Olympics this summer.
Today a court is set to rule against the BOA's lifetime Olympic ban for drugs cheats, which means they'll be forced to pick him if he records a fast enough time in qualifying.
Olympic medallist Roger Black told ITV News that the decision would send a message to athletes that "the down side [of taking performance-enhancing drugs] isn't that bad any more."
Former Olympic triple jump champion Jonathan Edwards said "athletes should get a second chance (for doping offences). But two years is simply not enough. The world needs to unite and introduce four-year bans."
Latest ITV News reports
Sprinter Dwain Chambers cleared to compete in this year's London Olympics after a court overturned the BOA's lifetime ban on drug cheats.
Drugs cheats Dwain Chambers and David Millar will have lifetime bans lifted today, allowing their selection for the London 2012 Olympics.