The Information Affairs Authority announced the lifting of the suspension against Al-Wasat late yesterday following discussions with the paper's management.
The official Bahrain News Agency says the talks were "to rectify past legal and regulatory failings" and to secure commitments to "meet the necessary standards" in the future.
Authorities suspended the paper's publication late Thursday after finding it violated the law and spread information that affects national unity and the kingdom's international relations.
The paper was forced to temporarily halt operations in 2011 following anti-government protests dominated by the country's Shiite majority against the Sunni monarchy. Its co-founder, Karim Fakhrawy, died in police custody in April 2011.