A senior leader of the PML-N, which is in power at the centre and in the province, has announced that Basant may be made a part of the Punjab Sports Festival 2014.
"We are seriously considering allowing kite-flying on a limited scale," said Hamza Shahbaz, son of Punjab Chief Minister Shabaz Sharif.
Residents of Lahore, particularly kite-flyers and fans of the sport, welcomed the government's move.
"Kite-flying, an integral part of Basant, can be allowed on an experimental basis in a limited area like Chhanga Manga forest to the southwest of Lahore and Jallo Park to the northeast of the city," Shahbaz said.
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However, civil society groups have said the ban was influenced by pressure from right-wing groups which claim the festival has "Hindu overtones".
Shahbaz said the reservations of some people about deaths related to kite-flying would have to be allayed before the revival of the festival, which is usually held at the end of February. Motorcycle riding may be banned for 24 hours during the festival, he said.