The Labour Party and the ruling All Progressives Congress had separately challenged the candidature of Mr Otegbeye and 23 others, over alleged violation of the Electoral Act.
The Appeal court sitting in Ibadan, capital of Oyo State, has reinstated Biyi Otegbeye as the Ogun State governorship candidate of the African Democratic Congress (ADC).
The court also reinstated all the 26 House of Assembly candidates of the party.
The Labour Party and the ruling All Progressives Congress (APC) had separately challenged the candidature of Mr Otegbeye and 23 others, over alleged violation of the Electoral Act.
The plaintiffs held that the primary elections of the ADC were not monitored by the Independent National Electoral Commission, INEC.
The Federal High Court in Abeokuta agreed with the APC and the Labour Party and sacked Mr Otegbeye and all the assembly members.
The party and the respondents, however, filed an appeal against the judgement of the lower court.
Sequel to the appeal, the court ordered the Independent National Electoral Commission, INEC, to enlist Mr Otegbeye and the 23 others.
The court relied on the provision of the Electoral Act which states that "no member of a political party has a locus standi to question the decision of another party in the nomination of its candidate for elective positions."
Mr Otegbeye is the anointed candidate of the immediate past governor of the state, Ibikunle Amosun. Mr Amosun is the sitting senator representing Ogun Central district.
Although he is not seeking reelection under the ruling APC, he is backing Mr Otegbeye of the ADC against the reelection bid of Governor Dapo Abiodun.
Reacting to the judgement, Mr Otegbeye in a statement in Abeokuta, on Monday, described the judgement as a victory for the people of Ogun State.
He said "While the appeal subsisted, we were undaunted by the schemes of our traducers and had no doubt of victory because we have fully complied with all extant provisions of the Electoral Act throughout the conduct of our primaries.
"Thankfully, our prayers were granted by the Court of Appeal. Let me swiftly acknowledge the Nigerian Judiciary as the last hope of the common man. I also appreciate the Court for protecting the integrity of jurisprudence and sanctity of democratic values.
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"It is clear that the ruling APC have run out of ideas and the needed justification to demand the people's mandate for a second term; hence the desperate effort, at taxpayers expense, to take us out of the ballot.
"Unfortunately, they have failed and must now be ready to test their much diminished popularity and integrity at the polls."
Meanwhile, Mr Otegbeye promised to, "fix Ogun State and repair the broken systems. The ADC administration will create opportunities for all classes of people, restore the glory of the Gateway State, enhance the dignity of citizens and establish a culture of collective growth and shared prosperity.
"The victory at the Appeal Court today is, therefore, not just for us but for the good people of Ogun State who have been made to endure a most painful period under the governance of APC."
He urged residents of the state to collect the Permanent Voter Cards (PVCs) and be ready to exercise their democratic franchise in the February and March elections.
He further appealed to the people not to allow "anyone or thing" disenfranchise them, "as their decisions at the poll will dictate what their living conditions will be like in the next four years."
