A consultant gynaecologist who was suspended from a leading teaching hospital after protesting about staff shortages and the promotion of a doctor involved in an embryo mix-up has been reinstated, it emerged yesterday.

Geeta Nargund said she was delighted to be back at work at St George's hospital in Tooting, south-west London, after a 15 month absence. Mrs Nargund, 44, was medical director of the Diana, Princess of Wales, centre for reproductive medicine from May 1998 until October 2002, when she was suspended and the unit was closed by the NHS trust.

Last June Mrs Nargund brought a libel action - believed to be the first by a consultant against a hospital trust - after the medical director, Paul Jones, blamed the embryo mix-up on her management.

Speaking to the media, he said: "It was a badly organised unit. It was basically chaotic and they couldn't focus on the job in hand. The mistakes were waiting to happen."

Yet the human fertilisation and embryology authority had praised Mrs Nargund for her "textbook" handling of the mix-up, which occurred when she was away.

The hospital was forced to issue a high court apology, making it clear that Prof Jones had never intended to suggest any lack of professional competence on Mrs Nargund's part, and agreed to pay substantial damages.

Mrs Nargund remained suspended on full pay after the hearing. Seven months later the trust has welcomed her back.

A statement issued yesterday said: "The trust acknowledges her skills, expertise and commitment to the NHS and is pleased to have her contributing to the healthcare of its local population."