The decision came after Mayor Ras Baraka expressed confidence that demonstrators could continue to protest peacefully without restrictions.
The city had implemented a curfew around the facility from 9 p.m. to 6 a.m. as protests outside Delaney Hall intensified.
The restrictions were put in place amid escalating demonstrations that prompted Gov. Mikie Sherrill to deploy New Jersey State Police to the area last Friday.
Newark police have since taken over public safety operations.
It has now been more than a week since protesters began gathering outside the immigration detention center in support of detainees they claim are being mistreated inside the facility.
Meanwhile, the City of Newark and the State of New Jersey have filed a lawsuit against the operators of Delaney Hall, citing concerns about conditions at the detention center.
Officials with the Department of Homeland Security have denied allegations that detainees are being abused.
Mayor Baraka said community policing officers will continue engaging with demonstrators and will focus on communication rather than confrontation.
City officials say the coming days will serve as a test of whether the less restrictive policing approach can help maintain calm around the facility as protests continue.