A spokesman for Kentucky told ESPN.com that Masiello completed his coursework and will be awarded a degree in August.
It was discovered that Masiello had not earned his degree from Kentucky. Masiello had accepted the South Florida job, but a background check turned up that he hadn't finished the requirements to earn his degree, and the offer was withdrawn..
Manhattan said it would reinstate Masiello once he completed his degree.
Masiello led the Jaspers to a 25-8 record, the NCAA tournament and a near-upset over Louisville this past season. He has a 60-39 mark in three seasons as coach.
Associate head coach Matt Grady was serving as the Jaspers' interim head coach during Masiello's absence.
"I am extremely grateful and humbled by the opportunity to continue as the head men's basketball coach at Manhattan College," Masiello said in the statement back in April. "I made a mistake that could have cost me my job at an institution I love. Details matter.
"Manhattan College has shown me a great deal of compassion and trust during this process, and I will do everything in my power to uphold that trust. I understand that I am very fortunate to have the chance to remain here at Manhattan."
Masiello reportedly was about 10 credits short of his degree.