Businesses in Mexico City have been hit hard by the flu outbreak
Mexico City has lifted all restrictions imposed last month, following an outbreak of swine flu across Mexico.
Mayor Marcelo Ebrard said no new infections had been reported for a week in the capital and there was no longer a need to wear mask in public places.
The city virtually ground to a halt at the height of the flu emergency, with schools, bars and cinemas closed.
Mexico's flu death toll rose by three to 78 on Thursday, officials said. Some 4,000 people have been infected.
Authorities in the sprawling capital on Thursday lowered its four-level alert system from "yellow" to "green" - the lowest level.
"We can calm down now," Mayor Ebrard said.
"Now you can come to the city without any risk," he said, adding that there was "no longer any need" to wear masks in public places.
However, the mayor urged residents of the city to remain.
The World Health Organization said on Thursday that 41 countries had reported 11,034 cases of swine flu , or influenza A (H1N1) infection, including 85 deaths.
The world remains at the second-highest flu alert level, which means an "imminent pandemic".