Sheffield City Council was ordered to stop felling trees in February after campaigners applied for a temporary injunction.
Mr Justice Gilbart lifted the order on Wednesday and is expected to hand down his final judgement next month.
The council said it would not implement its full felling scheme until the ruling.
Sheffield Tree Action Group (Stag) said it was disappointed by the news.
Executive director Simon Green said: "We are delighted that the court has agreed with the council's case to have the tree injunction lifted.
"However, we have been clear throughout that we want to make sure that our work with communities on this issue is right, so we will not resume the full street tree replacement programme until we have had the court's final decision.
"We will of course continue to assess our trees and replace those that are dangerous."
More than 3,300 trees have been removed across the city since 2012 as part of a Â£2bn project.
Campaigner Dave Dillner, from Stag, said he retained "a measure of confidence" over the High Court's final decision.
"It's absolutely not the end of the campaign. We wait with interest Mr Justice Gilbart's final judgement," he said.
The Labour-run council launched the scheme to remove dead and dangerous trees from the roadside.
It planned to remove and replace about 5,000 trees in total and has so far replanted about 3,600 trees.
Former Lib Dem leader Nick Clegg previously called on the council to abandon the programme and described it a "national scandal".

Australia levelled the Ashes series with a 405-run win at Lord's that saw England's top order collapse in both innings and the bowlers struggling.
Gary Ballance has now been replaced by Jonny Bairstow in the squad for next week's third Test at Edgbaston.
"This shows nobody is safe in the team," said Lyth.
"Gary is averaging almost 50 and he now finds himself out of the side so if you aren't scoring runs you aren't in the side," Lyth wrote on his Facebook page.
However, the Yorkshire opener believes such competition is "healthy" - and says he is in better form than his dismissals for a duck and seven at Lord's showed.
"I played a bad shot in the first innings at Lord's," he said. "Hopefully there is a big score around the corner. I feel in good nick so I'm not too worried."
The 27-year-old said he was "gutted" to see county team-mate Ballance dropped - he averages 47.76 from 15 Test matches, and scored a half-century in the first Test in Cardiff.
But Lyth believes Bairstow - another Yorkshireman - will continue his strong domestic form for England.
The return of Bairstow will see Ian Bell moved up the batting order to three.
Bell has averaged just 14.50 with the bat this summer and there have been suggestions he could also be dropped if he fails to get runs in the third Test.
However, Australia batsman David Warner says his camp is wary or writing off the Warwickshire batsman too soon.
"He's got the weight of runs behind him, the experience in the games. I think he's a world class player," said Warner.
"He may be out of touch at the moment, but we know what he's capable of, he killed us last time when we were over here, scored a lot of runs and we have to respect that."
Meanwhile, Australia players are "very happy" that batsman Kevin Pietersen is not playing in the Ashes though, according to former England spinner Shaun Udal.
Pietersen, 35, was left out after what previous captain and now England and Wales Cricket Board director of cricket Andrew Strauss called "trust issues".
But the nature of the Lord's defeat means his omission is "unfair" on fans and "ridiculous", according to Udal.
"That's also the view of three Aussie players I saw at Lord's," Udal said.
"They are very happy Kev isn't being picked because, in their words, if he came back the 'chances of Australia winning the Ashes would be reduced'.
Udal, who was Pietersen's captain at previous team Hampshire told Kicca.com: "If that's what the opposition thinks then that speaks volumes."
A ban on chopping down trees in Sheffield has been overturned by the High Court.
[NEXT_CONCEPT]
England batsman Adam Lyth says every player is at risk of being dropped from the team following their humiliating defeat in the second Test.