Chelsea had Terrys dismissal for fouling Manchester Citys Jo overturned by the FA.
The England centre-half will now NOT serve a three-match suspension and is free to face title rivals Manchester United at Stamford Bridge on Sunday.
United boss Fergie fumed: I understand Hackett told ref Mark Halsey to rescind the card and he wouldnt. So now he Is refereeing in League Two this weekend.
I do not understand how this has happened. If it had been a Manchester United player, Hackett would not have done this.
This is going to have to happen all the time if a referee is considered to have made a mistake.
An independent FA panel which did not include Hackett upheld Chelseas claim of wrongful dismissal.
Ref Halsey had no hesitation in sending off Terry for hauling down Jo near the centre circle in Chelseas 3-1 win at Eastlands on Saturday.
There appeared to be covering defenders, including Ricardo Carvalho.
Yet Halsey deemed the incident to be serious foul play and stood by his decision only for the FA panel to disagree after reviewing video evidence.
Halsey has now been demoted and will oversee Sundays League Two clash between Chester and Shrewsbury.