Benzema is being investigated for his part in an alleged plot to blackmail France team-mate Mathieu Valbuena.
The Real Madrid player - who denies wrongdoing - was not allowed to contact Valbuena, meaning they could not be in the same squad, but an appeals court has partially lifted some restrictions.
However Benzema, who is injured, was suspended from France duty in December.
That ban was due to stand until the end of court proceedings.
An investigating judge last month lifted the order keeping Benzema and Lyon playmaker Valbuena apart, but the prosecutor appealed. That was dismissed on Friday.
Benzema's lawyer, Sylvain Cormier, described the decision as "a first step".
The 28-year-old forward faces preliminary charges of conspiracy to blackmail relating to an extortion scam over a sex tape involving Valbuena.
If found guilty, he could face a minimum of five years in prison.
According to French media, Benzema mentioned a sex tape to Valbuena, 31, during a national team training session at Clairefontaine on 5 October.
Benzema told police he was advising a friend about what to do in a difficult situation.
But he could face charges for complicity in attempted blackmail and participation in a criminal conspiracy.

The 23-year-old from Holywood would be eligible for selection by either Great Britain or Ireland at the 2016 Games in Rio.
However, in a BBC documentary, he said he may opt out of the Games because he does not want to offend anyone.
He said he was considering the options of playing for Britain or Ireland or not playing at all.
"I just think being from where we're from, we're placed in a very difficult position," he said.
"I feel Northern Irish and obviously being from Northern Ireland you have a connection to Ireland and a connection to the UK.
"If I could and there was a Northern Irish team I'd play for Northern Ireland.
"Play for one side or the other - or not play at all because I may upset too many peopleâ€¦ Those are my three options I'm considering very carefully."
At the moment he has not made a definite decision but has admitted he regrets the Olympic furore of last year when a newspaper claimed he would prefer to play for Team GB in Brazil.
"It was a moment, I don't want to say of weakness, but a moment of, I guess, frustration with it all," the County Down man said.
"People tune in to watch me play on TV and feel like they are connected to me in some way.
"I don't want to do repay them for their support with something they don't want me to do."
In the documentary, McIlroy's tennis star girlfriend, Caroline Wozniacki, also gives a unique insight into the couple's relationship.
"It's good that we both have our own separate careers," she said.
"We know how the other is feeling and the drive to always want to improve at sport, but at the same time one of us isn't sitting at home waiting for the other.
"People watch him play and win all these tournaments, but he hasn't changed a bit."
The programme, which includes contributions from Tiger Woods, Darren Clarke and Graeme McDowell, charts a remarkable 2012 for McIlroy during which he became world number one, claimed a second Major Championship - the US PGA - and went on to top the money list on both sides of the Atlantic.
McIlroy also explains the Ryder Cup drama when he almost missed his tee time for the match with America's Keegan Bradley.
"I have never been as worried, as nervous or as panicked going to the golf course," he said.
Rory: Being Number One will be screened on BBC1 on Thursday at 22:35 GMT.
Striker Karim Benzema will be eligible to play for France at Euro 2016 after some legal restrictions were lifted.
[NEXT_CONCEPT]
World number one golfer Rory McIlroy has revealed that he may not play in the next Olympics.