A nursery judged to be failing because alleged bad hygiene practice put children at risk has made progress, Ofsted has said.
Purley Day Nursery & Montessori Centre was rated "inadequate" - Ofsted's lowest rating - in June after claims it had contributed to a bout of diarrhoea among children and staff by failing to follow health and safety guidelines.
Owner Sharman Allerton, however, strongly disagreed with the report and launched an appeal.
The nursery, in Burcott Road, was subject to a monitoring visit by Ofsted in July, the results of which have now been published.
Inspector Rebecca Khabbazi found the nursery had developed a "clear" action plan to address the issues.
Systems for vetting new staff had been revised and the sickness policy has been updated, she said.
"Having considered all the evidence, the inspector is of the opinion that the setting has taken prompt and effective action to address the points for improvement," the monitoring letter concluded.
Purley Day Nursery is one of 16 nurseries to have been rated as inadequate or "requires improvement" since tougher inspections were introduced last November.
It will now be subject to a full inspection later this year.