Millie Foley, 15, was ordered by teachers at All Saints High School, Kirkby, Merseyside, to return home and wash the colour out of her hair.
The teenager insisted her dyed red locks did not 'affect her learning'.
Staff have now conceded the colour can remain for the time being, saying Millie's parents were invited to the school to attend a meeting to reach a 'sensible conclusion' to the matter.
Millie's dad, Paul, told reporters that he agreed with his daughter that the hair dye did not have an impact on her school work. He added that her reports were 'on the whole outstanding'.
Millie said that she just wanted to 'look like Rihanna'.
Should schools be allowed to dictate how pupils wear and colour their hair?
Would you allow your child to dye their hair such a vibrant shade during term time?