Jack Rodwell's appeal against his controversial red card in last weekend's Merseyside derby has been upheld and he will not serve a ban.

The 20-year-old Everton midfielder was sent off by the referee, Martin Atkinson, in the 23rd minute for a challenge on Luis Suárez which appeared neither dangerous nor reckless.

Everton lodged a claim for wrongful dismissal with the Football Association and the governing body's appeals panel have upheld that claim. The decision means Rodwell's three-match suspension has been withdrawn.

Immediately after the match, which Everton lost 2-0, David Moyes expressed his amazement at Atkinson's decision.

"It ruined the game. I would have been disappointed if it had been a free-kick and if he had given a yellow card you would have said: 'What is that for?' I don't think anyone in this world thought it was a sending-off."

Everton's chief executive, Robert Elstone, welcomed the FA's decision but said it meant little in the wake of a defeat.

"Whilst we welcome the correct decision the FA panel has reached, it's of course an outcome which will provide little consolation whatsoever to the 37,000 Evertonians packed into Goodison on Saturday to watch the 2-0 defeat," he told the club's website.

"The Merseyside derby is a special occasion and many of our fans will have made financial sacrifices to make sure they were there to support the team.

"From the press, radio and television reports that surfaced in the aftermath of Saturday's events, they were almost unanimous in their verdict and we are pleased with the news that quite rightly the red card has been rescinded."

The Everton chairman, Bill Kenwright, added: "One of the biggest tragedies was for Jack himself. He has had a terrific season and was by far and away the most influential midfielder on the pitch up to that point.

"To deny him the opportunity to continue on such an important occasion must have been incredibly difficult for Jack – as it was for his team-mates, manager and, of course, the fans."