The Swedish judiciary issued a decision on Tuesday to cancel the ban on demonstrations, which are expected to witness the burning of new copies of the Holy Quran.
In February, Swedish police refused permission to burn the Koran in front of the Turkish embassy, saying it would "provoke serious disturbances to national security".
The police bans were challenged in court in Stockholm for "violating the freedom of demonstration guaranteed by the constitution".
The Administrative Court of Appeal found that the police "do not have sufficient justification for their decision" to ban demonstrations expected to witness the burning of the Koran in front of the embassies of Turkey and Iraq.
The judge in charge of the case also considered that the threats made by the police to ban the burning of the Koran were "not sufficiently tangible", according to a court statement.
Meanwhile, the Swedish police announced today the arrest of 5 people on suspicion of preparing attacks in the country.
On 21 January, the leader of the far-right Danish "hard line" party, Rasmus Paludan, burned a copy of the Koran near the Turkish embassy in Stockholm, under tight police protection, who prevented anyone from approaching him while committing the provocative act.
The burning of the Koran drew Arab condemnations and calls for a boycott of Swedish products, and the incident sparked a series of official protests in the Muslim world.