The drama began on May 17 when Kesha said she had been barred by her record label from performing at this weekend's event amid her contract dispute with Dr Luke.
Just days before the show, Kemosabe Records changed their mind under one condition, reported Ace Showbiz.
"Kesha's performance on the Billboard Music Awards was always approved, in good faith," the label said in a statement.
"Approval was only suspended when Kemosabe learned Kesha was to use the performance as a platform to discuss the litigation. Now that Kemosabe has obtained assurances, that it is relying upon, from Kesha, her representatives and Dick Clark Productions that neither Kesha nor her supporters will use the performance as such a platform, the approval has been restored."