The order comes after a review by the state home department of his suspension in less than a week after Anandiben Patel took over as the chief minister from Narendra Modi.
Mr Singhal was given a default bail by the court after the Central Bureau of Investigation (CBI) failed to chargesheet him in the mandatory 90 day period.
He was also at the centre of a controversy when he had reportedly recorded a conversation at a meeting of law officials, ministers and other officials which was allegedly convened to derail the Ishrat probe.
Mr Singhal is also reported to have handed over to the CBI, secret recorded tapes which lead to the Snoopgate scandal involving a young architect, who was allegedly snooped over by the Gujarat government.
Meanwhile, earlier this month, another IPS officer Dinesh MN, allegedly involved in the Sohrabuddin Sheikh fake encounter case and out on bail, was reinstated by the Vasundhara Raje government in Rajasthan.
Get Breaking news, live coverage, and Latest News from India and around the world on NDTV.com. Catch all the Live TV action on NDTV 24x7 and NDTV India. Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.