Charkaoui, a Muslim who owns and runs the École des compagnons out of four classrooms rented from Collège de Maisonneuve, has been linked to a group of seven people, including five CEGEP students, who left to join jihadists in Syria.
After reports surfaced in late February that at least one of Charkaoui's students was suspected of travelling to Syria, school officials suspended his contract.
There is no proof Charkaoui committed any wrongdoing.
CEGEP spokeswoman Brigitte Desjardins said that after consulting lawyers and the RCMP, the school realized it didn't have any legal grounds to suspend Charkaoui's contract.
École des compagnons will now be allowed to resume classes on Sunday — on the condition that Charkaoui allow a college-appointed observer to sit in.
"We just want to be sure that our rules and our values are respected. Nothing with violence so this is why we are going to send some observers just to be sure," Desjardins said.
Charkaoui said he welcomes observers.