The dramatic turn of events came at a disciplinary hearing in the Scottish capital, with both parties moving ever closer to resolving their differences which centre on a row over fees Edinburgh claim to be owed in Celtic League and European Cup fees.
An independent disciplinary panel confirmed Edinburgh breached International Rugby Board regulations by preventing 12 players joining up with the Scotland squad for the World Cup training sessions which took place between Monday and Wednesday last week.
The penalty announced by the SRU was a straightforward censure, rather than any tangible punishment which could have widened the rift between both parties.
Edinburgh announced on Thursday that their international players had now been released and were available for Scotland duty immediately, and they will join Frank Hadden's squad for training next week.
The most significant development this evening saw Edinburgh agree to come back on board with the SRU, having resigned their associate membership six days ago.
In a statement, the SRU confirmed: "During the discipline panel hearing, Edinburgh Rugby Limited withdrew the resignation notice of their associate membership of the Scottish Rugby Union which they issued to the SRU on July 6 2007.
"The Scottish Rugby Union accepted Edinburgh Rugby Limited's request, therefore Edinburgh Rugby Limited will continue to be associate members of the Scottish Rugby Union."