Makhloufi, who claimed the 1500m semi-final in 3min 42.24sec, had been constrained to take part the two-lap race after his team failed to take him out of it before the deadline.
Makhloufi took the start of the 800m race Monday morning but apparently did not want to do his best as he slowed down from running at a certain moment into the race and started walking.
The IAAF said he was a disgrace for sport and expelled the Algerian from further participation in the Olympic Games.
Makhloufi then consulted a doctor of the organization who declared that the Algerian medal contender in the 1,500 meters, is fighting knee problems. Thereupon his exclusion was undone and the runner will line-up at the start of Tuesday’s 1500m final.