The couple had been arrested on Jumeirah Beach on 5 July and last month they were given £170 in fines as well as getting sentenced to three months in jail.
Hassan Matter, who had been the lawyer representing the pair in the Dubai court, said: "The judge has cancelled the jail."
Palmer and Acors had originally been found guilty of unmarried sex and public indecency at Dubai's Court of First Instance, and Palmer lost her job in Dubai as a publishing executive after this happened.
Acors had been on holiday in Dubai and had met Palmer there.
At the trial in August, Palmer maintained that she hadn’t had sex with Acors, but claimed they had just hugged and kissed each other.
