King Bhumibol Adulyadej approved a request from Prime Minister Prayut Chan-o-cha to lift the controversial law.
"As of now there is a royal order to lift martial law across the kingdom," an announcement on military television said. The broadcast said it takes effect immediately.
According to the broadcast, the controversial law will be replaced by special security measures outlined in the interim charter which critics say allow junta chief and premier Prayut to wield even greater powers.
Section 44 gives the military-appointed National Council for Peace and Order chief unrestricted right to exercise powers of the executive, legislative and judicial branches of the government to promote reform and unity, and suppress threats to national security, the royal institution and the economy.
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Among other powers, article 44 of Thailand's new Constitution allows the Prime Minister to issue executive orders to "disrupt or suppress" threats to national security or the monarchy.
Prayuth, who led last year's coup and has since been appointed prime minister, yesterday said he had asked the king for permission to bring an end to martial law.
Prayuth declared martial law last May, two days before he toppled Thailand's elected government in a military coup as army chief.