The stands have been forced into a U-turn over her decision to cancel Joanna Cherry’s Edinburgh Festival Fringe event.
The comedy club the show was cancelled after staff said they were “unwilling” to work on it.
However, the venue has now said the decision was “unfair and unlawful discrimination” against the SNP MP.
The backtrack comes after the club sought further legal advice from a separate company after Ms Cherry threatened to take legal action.
In a statement published Friday, a spokesperson for The Stand said: “Having considered that new advice, we now accept that the earlier decision that the event could not take place was unfair and constituted unlawful discrimination against Ms Cherry.
“We now publicly and unconditionally apologize to Ms. Cherry.
“We have sent Ms. Cherry and her legal team a detailed response and have spoken to the event organizers to confirm that we can run the event as originally planned.”
In response, Ms Cherry said: “This is a very welcome move from The Stand and I look forward to taking part in the show.
“I hope that The Stand’s full and candid acceptance that discriminating against me because of the philosophical beliefs I hold as a lesbian and feminist was unlawful will benefit other women and men by discouraging others from suffering similar discrimination in the future .”
Ms Cherry had been asked to appear on The Stand in August as part of a series of In Conversation With events organized by Fair Pley Productions.
She claimed she was “cancelled” because she is a “lesbian with gender-critical views”.
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Ms Cherry said she planned to talk about a number of topics, including her career in politics, the independence movement and the current controversies surrounding the SNP.
The Stand added: “The Stand will be donating our share of the event’s profits to one of our partner charities, Edinburgh Food Project.
“The management of the event will be discussed with the staff in the coming weeks.
“We have always been clear that we oppose all forms of discrimination and recognize the rights of individuals to express views with which we cannot agree.
“We hope this apology draws a line under this episode and allows The Stand to get back to doing what it does best.”