Disney has reinstated the director after his high-profile firing from the Marvel movie last summer over social media posts made by the director between 2008 and 2012.
Deadline first reported the news, which has been confirmed to CNET by Gunn's representatives.
The movie was then officially put on hold in October.
The stars of the movie -- including Chris Pratt, Zoe Saldana and David Batista -- have all been quite vocal about the firing, wanting Gunn to return to the project.
During the months that Gunn had been pushed away from the sequel, he signed on to write a new Suicide Squad film for DC.
And regardless of whether Gunn would of been directing, Pratt said in February that the film would be going forward using Gunn's script.