The reality star pleaded guilty to possessing class C drug ketamine following an arrest earlier this year.
The 27-year-old could have faced up to three months in prison but was instead given conditional discharge and ordered to pay £85 in costs.
A spokeswoman for the show said: “After being suspended without pay James Lock will return to TOWIE following his conditional discharge.”
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A source told a British newspaper: “Despite James pleading guilty to possession, no drugs were found in his system.”
“And the courts even noted James’ good behaviour and the fact that he had no previous convictions, so producers took that into account. He showed great remorse for his actions, which was really important to ITV2.”
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“He really did not take it lightly, and accepted his suspension, understanding it was a direct consequence of his behaviour.”
They continued: “It will all be acknowledged on screen. It is a really serious incident and it will be made clear to fans that series bosses treated it as such.
"Seeing as the courts have resolved the issue, TOWIE will not be taking it any further.”
Do you think James should return to TOWIE?