The governing body said it was a "non-intentional" violation on Yates' part.
The Briton has been in limbo since it was revealed in April he tested positive, with his last racing appearance at the Tour of the Basque Country. But now the UCI has confirmed that he has been handed a four-month sanction which will back-date to when his positive sample was collected on March 12.
That means Yates will be able to return to competition with his Orica-GreenEdge team on July 11, too late to compete at the Tour de France, but in time to take to the start of the WorldTour race, the Tour of Poland which begins on July 12.
The 23-year-old's positive test was put down to a team doctor failing to submit a Therapeutic Use Exemption (TUE) form for the substance, which relieves asthma symptoms. Orica quickly claimed full responsibility for the violation, and have described it as "an administrative error."
But that hasn't seen Yates escape a ban, with the UCI confirming on Friday afternoon that he has been officially sanctioned.
Orica-GreenEdge general manager Shayne Bannan responded by saying: “Simon has been given a four-month sanction by the UCI given the administrative error in not having a required TUE for his asthma inhaler at Paris-Nice."
"The team has taken full responsibility for this all along and we look forward to seeing Simon back racing.
"It has been an unfortunate break due to circumstances that Simon cannot be blamed, but above all, we are happy that is has now come to a conclusion.
"Simon has been training well and we welcome him back on the roster for a strong second part of the season."
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