Reed was on track to meet the minimum start requirements to keep his membership before withdrawing from the Turkish Airlines Open last month over security concerns. He also did not play last week's Nedbank Golf Challenge, meaning that he only played three European Tour events outside of the majors and WGCs: the Scottish Open, Olympics and Ryder Cup.
Tour regulations require players to make at least five such starts, so Reed was stripped of his membership last week in a move that allowed England's Graeme Storm to move up a spot and retain his own playing privileges.
But European Tour CEO Keith Pelley announced Monday that Reed will retain his membership thanks to his win at the 2014 WGC-Cadillac Championship at Trump National Doral, an event that was co-sanctioned by the European Tour.
"We are delighted to announce that Patrick will return to action on the European Tour for the 2017 season," Pelley said. "He is one of the game's most exciting talents, as everyone who witnessed his electric performance at this year's Ryder Cup will testify to, and our fans look forward to seeing him in action again next year."
"I love to compete and I take pride in the fact that I have both my PGA Tour card and my European Tour card," Reed added in a release. "I am grateful that I will continue to be a part of the European Tour and I value the opportunity to play with the best players in the world, all over the world."