The competent minister Svandís Svavarsdóttir suspended the hunt in June because there were doubts whether the hunt could be reconciled with animal protection. A group of experts has now looked into the matter and concluded that it is possible to improve hunting techniques.
Detailed requirements will now be made known as to what material may be used and how its use will be monitored.
The decision allows the hunt to begin on Friday. The hunting season runs until the end of the year.
Iceland, along with Norway and Japan, is one of the few countries still involved in commercial whaling.