The decision came after talks between Tamil Nadu minister K T Rajenthra Balaji and office-bearers of the fireworks manufacturers associations till late last night, sources said.
Sivakasi is the country's fireworks manufacturing hub.
The manufacturers had been on an indefinite stir from December 26.
Sources said the minister assured the protesters that the AIADMK-led state government would put pressure on the Centre regrading the manufacturers' demand.
The associations have also been seeking expeditious hearing by the Supreme Court of a petition seeking a series of steps to curb air pollution, including a ban on sale, possession and bursting of firecrackers across the country.