Ethiopia's parliament said in a statement that it had approved the delisting of the TPLF with the majority of lawmakers supporting the decision.
The delisting is a prerequisite to the TPLF's participation in an interim government, which the party nominated its spokesman, Getachew Reda, last week to lead.
The Tigray People's Liberation Front (TPLF), which led the northern region into war with the federal government in late 2020, was designated a terrorist group in May 2021.
The conflict ended with a truce last November after tens of thousands of people were killed and millions forced from their homes.
Getachew did not immediately respond to a request for comment on Wednesday.
This report was sourced from Reuters and Agence France-Presse.