On Tuesday, a court ruling had suspended Al-Wefaq’s activities for three months, saying that the opposition group has violated the law on associations.
Bahrain Mirror reported on Wednesday that Bahraini Minister of Justice Khalid bin Ali Al Khalifa ordered the suspension of the ban on al-Wefaq.
He said that the ban would not be enforced until Al-Wefaq holds its general conference.
The US, a key ally of the Al Khalifa regime, had expressed concern over the ruling, saying "such a move runs contrary to fostering an environment of political inclusion".
Al-Wefaq party has boycotted next month parliamentary elections.
The opposition party has announced that the upcoming elections will be undemocratic and will only give credit to the Al Khalifa rule.
Secretary General of the party Sheikh Ali Salman had earlier said that holding the election will only deepen the political crisis in the Persian Gulf monarchy.