IOC banned Russia from competing at next year's Winter Olympics in Pyeongchang.
But athletes who will successful in proving they are clean would be allowed to compete in South Korea under a neutral flag.
It follows an investigation into allegations of state-sponsored doping at the 2014 Games hosted by Russia in Sochi.
"This should draw a line under this damaging episode," the IOC said.
Russia's Olympic Committee has also been ordered to pay $15 million to reimburse the IOC's costs of investigating the doping scandal and help set up the new Independent Testing Authority (ITA).