A French union says it has secured the government's agreement to allow a protest march on Thursday in Paris, reports the BBC.
If confirmed, it would reverse a police statement earlier on Wednesday banning the demonstration.
Philippe Martinez, the head of the left-wing CGT union, said the ban had been lifted after an emergency meeting with the interior minister.
Police had insisted any rally would have to be stationary, citing violence at a Paris protest last week.
But the ban elicited a furious reaction, with union leaders and many Twitter users pledging to defy it.
"After tough talks with the interior minister, the union and student organisations obtained the right to demonstrate on a route proposed by the interior ministry," Mr Martinez told a news conference.
Mr Martinez said it was a "victory for democracy" and urged workers to turn out in "massive" numbers.
The agreed route, proposed by the interior ministry, will cover 1.6km (one mile) near the centre of Paris.