The 23-year-old received a red card against West Bromwich Albion on Saturday, but the Frenchman is now available for selection after Rovers argued that there were "exceptional circumstances".
"Rovers have been successful in their appeal over a three-match ban given to Anthony Modeste," a statement on the club's official website read.
"The striker was given a straight red for violent conduct on Saturday at The Hawthorns against West Bromwich Albion but today the FA Commission have heard the case on the grounds of exceptional circumstances and have reduced the punishment to a one-match ban with immediate effect.
"This one-match suspension was served last night in the game against Liverpool so the on-loan striker can be considered for selection with immediate effect."
Modeste joined the club from Bordeaux in January.