Children have endured daily protests at their school for 12 weeks
The decision was taken after Glenbryn residents voted in favour of a package of community safety measures in the Ardoyne area during a meeting on Friday night.
The dispute, which involved protests by the residents outside the school since the beginning of September, prompted a large security operation.
They said they were protesting because of attacks on their community, which they claimed were by the larger Catholic population of Ardoyne.
The MP Nigel Dodds welcomed the decision by the Glenbryn residents but said the decision to address their concerns was long overdue.
"I don't think there is any question of reward or victory in this," he said.
"I think that some of the issues that are now being resolved and addressed are long overdue for addressing.
"They should have been addressed years ago and one of the reasons that we are in the mess that we are in is that these issues were ignored for far too long."
Catholic parents said they were looking forward to walking their children to school on Monday, free from the intimidation of the protesters.
"We welcome that there will be no people on that road protesting, we really do,"said Philomena Flood whose seven-year-old daughter is a pupil at the school.
"It will be marvellous to see if the children, after five months, will now be able to walk up the road without anybody shouting at them and without anybody calling them names."
SDLP assembly member for the area Alban Maginness said the suspension will be a start to repairing the damage that has been caused in the area.
"Everyone in north Belfast is much happier today about the decision to suspend the protest," he said.
"Hopefully the protest will end completely and that this suspension will not simply be a temporary one but a permanent one and will lead to a cross community dialogue.
'Relief'
"It is so important that that dialogue commences."
Protestant community worker Mark Coulter said that dialogue between the two communities must now begin.
"It has been suspended to give the measures in place an opportunity to work and particularly to get into dialogue with the nationalist community," he said.
"The long-term solution to this is through dialogue and it has got to happen."
Speculation of a deal had mounted following talks between the residents and Northern Ireland's first and deputy first ministers.
On Friday, Glenbryn residents discussed a package of safety measures on offer, such as road ramps, closed circuit television and police patrols.
Chairman of the Holy Cross board of governors, Father Aidan Troy, welcomed the suspension of the protest.
"It's affected everybody in Ardoyne, not only here in Holy Cross but all the way up through Glenbryn.
"Hopefully, this is the beginning of a new and better life for us all."
The decision to suspend the protest was welcomed by the Secretary of State, John Reid. Irish Prime Minister Bertie Ahern also offered his congratulations.
He said he hoped it would now be possible to bring back normality to the people of the Ardoyne - "especially the children".