Steeplechaser Genevieve LaCaze is set to compete in London after an under-pressure Athletics Australia backflipped and agreed to extend its Olympic selection cut-off date.
LaCaze missed the previous June 11 qualification deadline by little more than a day when she bettered the qualifying standard in Indianapolis on Wednesday.
But she looked like being denied a spot on the team after AA said on Friday it would be unfair to bend the rules and include her.
However, after heavy pressure from all quarters, notably Australian Olympic Committee (AOC) boss John Coates, AA caved in on Saturday by announcing it would extend the deadline to June 22.
The decision clears the way for LaCaze to compete at her first Olympics.
She will become the 55th member of Australia's athletics squad while it also leaves the door open for other athletes, including long jumper Fabrice Lapierre and runner Tamsyn Manou, to make last-ditch selection attempts in the coming week.
Lapierre went agonisingly close to securing a qualifying jump last week and is competing in the US this weekend.
The AOC said common sense had prevailed with the decision to accept the 22-year-old's qualifying time.
"It's a terrific decision because Genevieve is not only a great talent, who has done a great time for London, but she's also someone for the future and we're all about nurturing athletes and talent for the future," AOC spokesman Mike Tancred told AAP.
"It's not only the fact she'll be running in London but we're looking forward to her hopefully continuing on to Rio 2016."
After athletics officials claimed on Friday they could not budge on their stance, AA chief executive Dallas O'Brien described Saturday's decision as a "win-win" for all parties.
"The AOC certainly made it clear they were keen to extend (the deadline) out to the 22nd of June for everybody so we're happy and it's hopefully a win-win for everybody," O'Brien told Fox Sports.
"Obviously we're really thrilled for Genevieve to be in the team.
"And, from Athletics Australia's point of view, it looks like we'll now have an additional A-qualifier which takes it up to 55 athletes for the Olympics, which is a great result for us."
LaCaze - who has spent the past four years on scholarship at the University of Florida - was one of at least three Australian athletes to have officially asked AA to reconsider their non-selection in the team.
Earlier on Saturday, she argued it would not be unfair to allow her on the team, given Australia has no other contenders in the 3000m steeplechase.
"If I get to go, I'll be the only one representing Australia," she told the Nine Network during a satellite interview from the United States on Saturday morning.
"However, if I don't make this team and don't go to London, we will have no Australian representing the green and gold in that event.
"It's so difficult to comprehend."
Saturday's decision spared LaCaze an appeal to AA and possibly the Court of Arbitration for Sport.
She bettered the qualifying standard by more than two seconds in Indianapolis and O'Brien said it would be exciting to see if she could continue her improvement in London.
LaCaze told Fairfax she was delighted and "in shock" over the decision.
"It's awesome. It's so exciting, I can't believe it, I am so happy," she said from the US.
"I am in shock. I just woke up because my phone kept ringing and I thought something must be up and I saw a text from my dad saying 'Gen you are in' and I put two and two together with all the phone calls.
"I just can't believe it. I have been aiming for this for as long as I can remember."