Pop singer Avril Lavigne will be allowed to perform in Malaysia despite concerns her show is "too sexy".
Fundamentalist opposition group the Pan-Malaysian Islamic Party had said Lavigne's shows were unsuitable for a Muslim-majority country.
The government then cancelled her concert on 29 August fearing disruption to independence day celebrations.
A government minister would not explain the turnaround but said there had been talks with the concert organisers.
Muzahet Masruri, secretary-general of the Arts, Culture and Heritage Ministry, told the AP news agency the gig organisers had told the government they had already sold thousands of tickets and that the cancellation could hurt tourism.
When cancelling the show earlier this week, the government denied the Pan-Malaysian Islamic Party had influenced their decision to stop Lavigne performing.
Lavigne, 23, whose hits include Complicated and Girlfriend, is planning to launch her month-long Asia tour in Kuala Lumpur.
Lavigne is not the only singer to have encountered problems when wanting to perform in Malaysia.
Last year, R&B singer Beyonce moved her show from Malaysia to Indonesia.
Christina Aguilera missed the country out of an Asia tour amid controversy over a dress code for foreign artists.
Official guidelines about performances in Malaysia state that female artists must cover up from the top of the chest to the knees.
Performers are also forbidden from jumping, shouting or embracing members of the audience.
US group The Pussycat Dolls were censured by the Malaysian authorities for flouting the regulations at a concert in 2006.
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