The 3km monitoring zone has been lifted near Bishop's Castle, after an outbreak of bird flu was detected on December 24, 2022.
The decision was made to lift the restriction on Thursday, after two months of monitoring.
A spokesperson for the Department for Environment, Food & Rural Affairs said: "Following successful completion of disease control activities and surveillance within the zone the 3km Captive Bird (Monitoring) Controlled Zone has been revoked."
It has been reported that all birds on the premises involved in the outbreak have been humanely culled.
Bird flu, or avian flu, is an infectious viral illness that spreads among birds. In rare cases it can also affect humans.