The decision means Elliott's six-game suspension is on hold once again and he is preparing to play Sunday against the Kansas City Chiefs. The 2nd Circuit said its brief order does not constitute a resolution on the merits of the court case.
A panel of federal judges will convene next week to hear Elliott's request for an injunction that overturns Judge Katherine Polk Failla's ruling from Monday.
Elliott could still start serving the suspension as early as next week if the ruling is not in his favor.
Cowboys owner Jerry Jones said he was informed early Friday morning that Elliott would be allowed to play Sunday.
"Glad he's going to be out there," Jones said after a plaque was given in his honor to North Texas representing his induction into the Pro Football Hall of Fame. "This Chiefs team is one of the best teams in the NFL and we couldn't have him at a better time."
Elliott received a six-game suspension on Aug. 11 for a violation of the NFL's personal conduct policy related to domestic violence allegations by a former girlfriend. He was never charged with a crime by the Columbus, Ohio, authorities who investigated the allegations.
With the stay of suspension, Elliott arrived at the Cowboys practice facility Friday morning. He was not with the team Wednesday and Thursday, per league rules.
In a brief meeting with coach Jason Garrett, Elliott told him he was ready to go and then headed off to meetings with Dallas' offense and the walk-through before the Cowboys hold their final full practice of the week.
"My energy level is high like the rest of this team," Elliott said. "I think everyone is excited. ... It seemed like a burst of adrenaline in this team when I came in the locker room and everyone saw me and realized I was going this week. We're all just excited to go out there and get better as a team this week and try to get another win."
Garrett said Elliott will be able to catch up on the game plan quickly, but the team will not alter his practice schedule Friday or Saturday. Elliott will remain with the coaches to get up to speed on the alterations made for the Chiefs' defense.
"Not really that challenging for us," Garrett said. "Again, we control what we can control. Zeke controls what he can control, and you go to work. Thought we had two good practice days on Wednesday and Thursday. Obviously the other running backs got that work. Zeke's a smart guy. He's played a lot of football for us in a short period of time. He'll practice today and we'll catch him up as we go here the next 48 hours and anticipate him playing in this ballgame."
The Cowboys had prepared a game plan earlier in the week in case Elliott would not be able to play Sunday.
The Cowboys (4-3) are in second place in the NFC East. They face a Chiefs team that is 6-2 and leads the AFC West.
The Cowboys are glad to have Elliott for at least Sunday. He has gone for more than 100 yards in each of the past three games and scored two rushing touchdowns in each of the past two.
"He's obviously a really good football player. He's been a big part of what we've done since we've got him last year," Garrett said. "Feel very confident in the other running backs that we have on our team. Again two good practices, guys that have been experienced and productive players in this league so we feel good about what their roles are but certainly he helps us. He's been very productive for us from the first game he's played. He's been playing awfully well here of late and excited to have him back."
Information from The Associated Press was used in this report.