Thompson received a red card in the incident that saw her have direct head-to-head contact with Woodman's head around the 20th minute of the final. Woodman had to leave the field after the blow and took no further part in the game.
A World Rugby independent disciplinary committee of Jennifer Donovan (chair-Ireland), Olly Kohn (Wales) and Sarah Smith (Scotland) heard Thompson's case.
Thompson told the committee she accepted she committed the act of foul play and it was deserving of a red card.
Having heard her evidence and reviewing footage of the incident, the committee applied World Rugby's mandatory minimum mid-range entry point for foul play that resulted in contact with the head. That involved a starting point of a six-match suspension.
The committee felt Thompson was entitled to consideration for full mitigation of three matches as there were no aggravating factors.
That would have left her unavailable to play again until after January 7. She will have the option of reducing her suspension by one week if she applies to undertake World Rugby's coaching intervention programme. It aims to modify specific techniques and technical issues seen in the incident. She would then be able to play after two games, starting from January 1.