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According to the stuff.co.nz website, it is understood that the troubled winger has avoided having his contract torn up by the New Zealand Rugby Union after his second serious misconduct hearing following an incident in which he punched a party-goer in Christchurch earlier this year.
An announcement will be made on Thursday morning by the NZRU which will deem Guildford eligible to return to the Crusaders.
The details of the hearing, which took place today in Auckland, and any other separate sanctions which Guildford may incur remain unknown.
The hearing was expected by some to be the end of Guildford's rugby playing days in New Zealand.
Guildford has already been suspended by the NZRU for four months after an alcohol-fuelled rampage in Rarotonga following the World Cup in 2011.
There were also multiple indiscretions while involved with the All Blacks which centred around alcohol.
The former All Black elected to lay off the booze for a year following the incident but was seen 11 months later drinking at an Ellerslie race meeting.
He then said he felt comfortable enjoying the odd quiet beer amongst friends.
But just weeks later the troubled star found himself in hot water again after he allegedly punched a young man at a Christchurch party.
Shortly after news of the incident broke, Guildford withdrew himself from the Crusaders.
He then put himself into an intensive rehabilitation course in the Hawke's Bay where he remained for one month.
Guildford is believed to have made good progress in addressing his issues with alcohol since leaving the Crusaders and has remained in contact with coach Todd Blackadder and several of his team-mates.
It is understood that the 23-year-old will be back in camp with his Crusader team-mates by the end of this week.
He is unlikely to be a late inclusion in the team to face the Bulls in Christchurch on Saturday.
