Taxi services are expected to resume in the Western Cape on Friday.
The South African National Taxi Council (Santaco) called off the seven day stay away on Thursday night.
The strike has caused widespread disruption including the deaths of five people.
Authorities say more than 190 criminal cases related to the taxi strike have been registered with the police.
Various incidents of looting and community unrest broke out during the period, with many communities left without access to healthcare, education and basic foodstuffs.
Santaco Regional Deputy Chairperson, Nceba Enge says the agreement reached with authorities is a significant step towards restoring trust and operations.
“It deeply saddens and disappoints us that it took this long for all parties to find a resolution. The well-being of our community and the public at large has always been our top priority, and it pains us to witness the unnecessary pain and suffering that transpired,” Enge says.
“I am pleased to announce that as part of the resolution reached between the taxi industry and the government, there is an agreement that the next 14 days will be utilised to work towards the release of the vehicles that were wrongly impounded,” He adds.
The Department of Tourism has conveyed its condolences to the family and friends of a British tourist who was killed in Nyanga during the taxi protest.
The British tourist is among five people who have died in incidents that are allegedly related to the taxi strike.
The Department says the British Tourist was killed after apparently taking a wrong turn, with two other family members in the car, from Cape Town International Airport and ending up in the protest.
Tourism Ministerial Spokesperson, Zara Nicholson says, “It is really sad that a visitor has had such a devastating experience in our country. This criminal behaviour goes against the overall spirit and nature of South Africans who are generally warm and welcoming.
“The safety of all of people and visitors to our country is our priority, and we are actively collaborating with authorities to ensure swift and calm resolution of all issues that have resulted in these protests. South Africa is dedicated to ensuring a secure experience for all who live and visit our country.”
VIDEO: Institute for Security Studies (ISS)’s Lizette Lancaster on the impact of the taxi violence:
Additional reporting by Corbin August.