Jordan will send its ambassador back to Israel, after withdrawing the envoy in November over restrictions imposed on Muslim worshippers accessing Jerusalem's Al Aqsa mosque.
Jordanian government spokesman Mohammad al-Momani said Israel had taken significant steps to ease tensions and had lifted the restrictions. King Abdullah is the official custodian of the site, the third holiest in Islam and also the location of the holiest place in Judaism.
"We noticed in the last period a significant improvement in Haram al-Sharif with numbers of worshippers reaching unprecedented levels," Momani said. Haram al-Sharif, known in Judaism as Temple Mount, is where the mosque is located.