The Portuguese Anti-Doping Authority handed down the suspension last August after an incident with three of their doping control officers at the Portugal training camp in May.
The Court of Arbitration for Sport today ruled that the former Manchester United assistant's conduct had not "disturbed the sample collection process or the work of the anti-doping officers''. But the panel did brand his behaviour "unacceptable''.
The CAS ruling said: "After their arrival, the anti-doping officers were approached by Mr Queiroz. Following a discussion, the anti-doping officers left to continue the anti-doping control and, as he was walking away Mr Queiroz uttered some very distasteful and sexually descriptive comments regarding the mother of the ADoP president.''
CAS said no players were directly involved in the incident and there was "no evidence that Mr Queiroz' behaviour was intended to disturb the doping control''.
The ruling said Queiroz "did not dispute the fact that his comments were both inappropriate and offensive''.
Queiroz, the former Real Madrid coach who had two spells as Sir Alex Ferguson's assistant at Old Trafford, was sacked as Portugal coach two days after a surprise 1-0 defeat to Norway in Euro 2012 qualifying last September.
He announced his intention to appeal against his suspension later that month, meaning he was free to work until the appeal hearing, though he has not found work since then.