A new green corridor will allow tourists to travel to the island providing they have a certification of a full, two-dose vaccination, or evidence of having recovered from Covid-19 in the past 90 days.
Travellers will have to submit their documentation via the Madeirasafe.com app prior to travel.
Madeira, by virtue of being part of Portugal, is currently on the government’s red list of 33 countries, from which arrivals into the UK must quarantine in a hotel at their own expense for 10 days.
Portugal was included on the list owing to its historic travel connections with Brazil, from which a particular Covid-19 "variant of concern" has been identified.
However, the Madeira Promotion Bureau argues the measures should not apply to the island.
"Despite currently being on the UK’s red list due to being part of Portugal – although it is geographically more than 1,000km from the mainland – there is no evidence of the Brazilian strain in the destination, and cases are dropping significantly," said the authority.
"In the past seven days, there has been an average of 54 new cases and 87 recovered per day. The target is to immunise 60-70% of the population by the end of the year."
The EU has announced it will present a framework for an EU-wide digital green pass by the end of the month, which could be rolled out in the summer.
The pass will allow travellers to carry verified certification of Covid vaccination, recent test results, or recovery from the infection using a smartphone app, supporting the resumption of intercontinental and international travel.