The Federal Aviation Administration (FAA) instituted a 24-hour flight prohibition Tuesday after a rocket landed roughly one mile from the airport.
"The FAA has lifted its restrictions on US airline flights into and out of Israel's Ben Gurion Airport by cancelling a 'notice to airmen' it renewed earlier today (Wednesday)," Xinhua quoted an agency statement Thursday.
The decision was made after the FAA worked with other US government agencies to assess the security situation.
The agency carefully reviewed both significant new information and measures the government of Israel is taking to mitigate potential risks to civil aviation, the statement said.
However, the FAA added that it will continue to closely monitor the very fluid situation around the airport and will take additional actions, if necessary.
The deaths from the Israeli offensive in Gaza strip, which started July 8, has mounted to 701.
Israel has lost four civilians and 28 soldiers so far.
Regional and international efforts to end the ongoing fighting between Israel and Palestinian factions in Gaza have been going on unabated.
The US State Department has been warning people to defer non-essential travel to Israel since early February this year due to safety concerns in Gaza.