The Scottish Football Association has upheld the appeals lodged by Dundee United and Dundee against red cards shown during United's 3-0 derby win.
United striker Johnny Russell and Dundee captain O'Donnell were both sent off after 72 minutes at Tannadice with the home side three goals in front.
Russell, who scored twice, and O'Donnell tussled as they rose after a heavy tackle by the Dundee midfielder.
Both players have had their sanction reduced to yellow cards.
The pair faced two-game bans if charged with violent conduct, but the charge was reduced to one of unsporting behaviour.
United striker Russell appeared to be penalised for kicking out at O'Donnell, but it is not clear whether the Dundee man was sent off for the initial high challenge or for a raised arm as the two players struggled to get back to their feet.
Dundee manager Barry Smith had told BBC Scotland he thought referee Calum Murray would himself decide to rescind both red cards.
Murray shows O'Donnell the red card after sending off Russell
"I think he'll have a look at it again and think, 'actually there was nothing to it'," said Smith immediately after the game.
"I think he reacted too quickly.
"I don't think either of them are ordering offs."
Houston came to the defence of both players following the incident.
"I had a wee look at it on television and they were yellow cards at most for both players," he said.
"I don't think Johnny did anything."