The Dragons today issued a statement confirming the decision in Packer's favour and he is expected to start at prop for coach Paul McGregor's team next season.
"The Dragons have been advised by Russell Packer's legal team of the positive outcome with respect to his immigration status," a club statement said.
"The Dragons and Russell respect the process, are pleased by the outcome and have no further comment to make on this situation.
"Russell's position at the Dragons remains unchanged, in that he continues to train fulltime in preparation for the 2016 season."
Packer could make his first appearance in the Red V in a trial match against Queensland Intrust Super Cup club Wynnum-Manly on February 6 - the same weekend as the NRL Auckland Nines.
The following weekend the Dragons will play in the annual Charity Shield fixture against the Rabbitohs in Sydney, before travelling across the Tasman to play Packer's former club the Warriors in Nelson on February 20.
A club spokesman told The Herald it would be McGregor's decision whether to include Packer in his squads for any of those games.
While his future remained up in the air, Packer received the support of several NRL stars, including Dragons and former Kiwis teammate Benji Marshall, who added their names to an online petition calling on the Australian Government not to deport him. Other former teammates from the Warriors, including Manu Vatuvei, Jeremy Latimore and Krisnan Inu, also put their names to the petition, along with Gold Coast's Josh Hoffman and Parramatta's Manu Ma'u.
With his NRL career uncertain, Packer spent this year playing in the second-tier New South Wales Cup competition with the Dragons' feeder side the Illawarra Cutters, while also studying towards a Certificate IV in Community Services.
His impressive form saw him named the Cutters Player of the Year and earned him selection in the NSW Cup Team of The Year.
In September he received the green light for an NRL return next year, before Dutton confirmed his application for a working visa was still to be determined.