Naveed was one of seven players penalised in March by the Pakistan Cricket Board (PCB) over discipline breaches following the team's winless tour of Australia.
PCB legal adviser Talib Rizvi said Naveed will have to approach the PCB to reconsider the sanctions.
"Naveed's appeal was heard on Saturday and the arbitrator has ordered the all-rounder to approach the PCB to reconsider the sanctions on him and the case will be heard on June 26," Rizvi told AFP.
Naveed, along with former captain Shoaib Malik, was banned for one year and fined two million rupees (24,000 dollars), while two other former captains, Mohammad Yousuf and Younus Khan, were banned indefinitely.
Current captain Shahid Afridi, Kamran Akmal and Umar Akmal were fined heavily.
The PCB appointed a one-man arbitrator, retired judge Irfan Qadir, who overturned the bans on Malik and Younus, while the fines meted out to Malik and the Akmal brothers were halved.
The fine on Afridi was revoked.
Yousuf, who retired from cricket in protest over the sanctions, did not appeal.
"The PCB has reconsidered the sanctions on all players, so if Naveed approaches the PCB his case will also be reconsidered," said Rizvi, dismissing suggestions the PCB succumbed to political pressure to revoke the penalties.
"PCB has sent strong signals that any indiscipline will not be tolerated and the sanctions were revoked and fines were reduced only after players confessed their crimes," said Rizvi.
Copyright AFP (Agence France-Presse), 2010