Athletics South Africa (ASA) said on Thursday it was not defying the IAAF by allowing Caster Semenya to compete in domestic meetings.
ASA believes its decision will help her prepare for the Commonwealth Games in New Delhi later this year.
Semenya got the all-clear to race locally despite a pending ruling by the IAAF on the dispute around her gender.
The 19-year-old is believed to be intersexed and it is thought this gives her an unfair competitive advantage.
ASA’s Ray Mali said until Semenya was officially banned, she would race in South Africa.