The decision was taken at a meeting of the state cabinet chaired by Chief Minister Akhilesh Yadav.
TET examinations held during the previous Mayawati regime were mired in controversy after arrest of Director Secondary Education Sanjay Mohan for allegedly manipulating the list of passouts.
The TET aspirants were holding agitations since then demanding that the examination should not be cancelled and those who had cleared it should be appointed as teachers.
The candidates, who cleared TET 2011, could now be appointed as teachers in schools run by Basic Education Department and aided and private schools, an official release said.
The cabinet also decided to appoint Siksha Mitra as assistant teachers in primary schools after two years of training through distance learning. Earlier, they were working in primary schools on adhoc basis on a fixed honorarium. As many as 1.24 lakh eligible Siksha Mitra holding bachelor degree would be provided training in two phases.