Moves were made to close section 111 and disperse fans around Celtic Park after the club was charged over the use of fireworks at their Champions League clash with Cliftonville last month.
But they have reversed the decision after receiving assurances that members of the group, often the focal point of singing and displays inside the ground, would halt 'unsafe behaviour'.
They had originally called the club's move 'pathetic' and threatened legal action but it emerged that there were serious concerns over the stadium's safety certificate that could have led to a cut in capacity or even closure.
A club statement read: "Celtic Football Club has suspended the relocation of season books for supporters within Section 111 at Celtic Park.
"Following extensive and positive discussions with supporters' representatives for the section, the club has received assurances relating to previously raised safety concerns and unsafe behaviour within the stadium.
"Celtic has engaged with the Glasgow City Council safety advisory group regarding this matter and they have noted these assurances. This matter will be monitored on an ongoing, match-by-match, basis by both the club and the safety advisory group.
"Celtic Football Club would like to reiterate its commitment and responsibility to ensuring the safety of everyone who visits Celtic Park. It is our absolute priority.
"The club is pleased to have engaged in positive dialogue in relation to this matter. We thank the safety advisory group and supporters' representatives for their continued co-operation and we look forward to working together to ensure a safe environment in the stadium."