Brazilian soccer players Diego and Rafinha will be allowed to remain at the Olympic Games in Beijing and play for their national team, despite their German clubs winning an appeal against he Fifa ruling obliging them to play.

The Court of Arbitration for Sport (CAS), meeting in Beijing, earlier upheld an appeal from Diego's club Werder Bremen and Rafinha's Schalke 04 after Fifa said clubs must release eligible players for the tournament.

However, the clubs said they would let the players stay in Beijing despite the ruling in their favour.

"We will release Rafinha for the Olympic Games if the Brazilian soccer association can allow him to participate at short notice," Schalke sporting director Andreas Mueller said.

Werder Bremen's sporting director Klaus Allofs echoed Mueller's comments and said Diego would be made available for the duration the Brazilian team was in the tournament.

Barcelona also appealed the ruling and are expected to pull Lionel Messi out of the Argentina squad.

It is not expected that any other players will be withdrawn as they have travelled with the permission of their clubs. Around half of the Premier League clubs have players on Olympic duty. Liverpool, in particular, are stretched, with three players - Ryan Babel, Javier Mascherano and Lucas Leiva - all in action in Beijing.

"The Court of Arbitration for Sport (CAS) has upheld the appeals filed by FC Schalke 04, SV Werder Bremen and FC Barcelona against the decision issued on July 30th, 2008 by the Single Judge of the Fifa's Players' Status Committee that consequently has been set aside in its entirety," said a CAS statement today.

CAS found that Fifa's position was based on custom rather than law, meaning clubs could not be forced to release their players.

"The Olympic Football Tournament Beijing 2008 is not included in the Co-ordinated Match Calendar and there is no specific decision of the Fifa Executive Committee establishing the obligation for the clubs to release players under 23 for this tournament.

"The requirements to justify a legal obligation of clubs to release their players for the Football Tournament Beijing 2008 on the basis of customary law are not met."