Silverstone will be allowed to have a full capacity crowd for next month's British Grand Prix.
The track can hold around 140,000 spectators, which will make it the largest crowd for a sporting event in the UK since the start of the coronavirus pandemic.
Silverstone said it would work closely with public health experts on the "specific conditions of entry that will enable the event to operate safely".
The race takes place on 18 July.
F1 president Stefano Domenicali said the development was "fantastic news".
The move follows large crowds being permitted for the final matches of Euro 2020, Wimbledon and Open Championship golf.
Capacity at Wembley will be raised to 60,000 for the semi-finals and final of Euro 2020, Wimbledon will start at 50% capacity on 28 June before rising to full 15,000 capacity for the men's and women's finals, while 32,000 spectators a day will be permitted at The Open.
UK culture secretary Oliver Dowden said: "Through our successful vaccine rollout and ambitious Events Research Programme we are continuing to make progress, and events like this will pave the way for everyone to enjoy live sport and culture together safely once more."
Silverstone managing director Stuart Pringle said: "This is something we have all been working towards for months and I cannot wait to welcome a full capacity crowd back to Silverstone this July.
"Many of our fans rolled their tickets over from 2020 but they are now well placed to enjoy what is sure to be one of the highlights of the summer."
Pringle thanked the government for "recognising what an amazing, safe opportunity the British Grand Prix offers to show the world how Britain has dragged itself back on track following the fight against the pandemic".
More to follow.