Academic activities at the Rajarata University will recommence on August 4, according to the university administration.
The decision to reopen the university was taken after students apologized for holding the university's Vice Chancellor and several other staff members hostage earlier this month.
All students who were facing disciplinary action have also been pardoned following the apology by students.
Meanwhile, the bans on students' unions within the university have also been lifted.
The disputes between the administration and the students at Rajarata University has been dragging on for several months. Students have been involved in a Sathyagraha Campaign for nearly 8 months. The university was closed after the hostage drama several weeks ago. A protest march was held last week to demand the reopening of the university.