The country will be added to UK’s quarantine-free travel corridor list from 4am on Saturday (22 August).
Transport secretary Grant Shapps confirmed the decision in a tweet shortly after 5pm on Thursday (20 August).
The Foreign Office has also exempted Portugal from its global advisory against all but essential travel.
Turismo de Portugal president Araujo said while the country "could not wait to welcome" visitors from the UK again, the UK’s decision to exclude Portugal from its safe travel list would linger long in the memory.
"While this has been a period nobody will ever forget, a period which has left behind a trail of destruction, sorrow, and pain, we are so thankful to be able to open our arms, even wider than before, to the people of the United Kingdom," said Araujo.
Araujo said "for quite some time", Portugal’s government and tourism officials had been "unwavering" in their confidence in the country’s safety following a "thorough, efficient and effective multi-sector strategy" to contain its coronavirus epidemic.
"We are now delighted to have arrived at a decision which we feel far better reflects the reality of the situation in Portugal," said Araujo.
Turismo de Portugal said that since May, Portugal had led the way in its efforts to negate the risks posed by Covid-19.
Efforts have included extensive testing, with Portugal ranking among the top 10 countries in Europe for testing with more than 1.8 million tests completed to date.
The country’s Clean & Safe seal, which examines safety throughout the entire tourism value chain, now has more than 21,000 businesses registered, while more than 22,000 tourism workers have completed the scheme’s training.
"Portugal has been welcoming guests from the UK since the beginning of July," said Araujo. "Therefore, this is not the case of a country just opening its doors after battling the worst of the pandemic, but the case of a destination which has been operating with the capacity for international visitors for some time now following effective early action in the battle against the virus.
"We have tourists in Portugal already who are enjoying themselves safely and responsibly. Portugal has open borders, open tourism activities, and is ready to welcome tourists in all regions, now without the need for a mandatory quarantine upon return to the UK."
Araujo added he expected Portugal’s air routes to recovery to around 60% of typical capacity in September.
"At this moment, Portugal already has global air connectivity to more than 81 cities, with 29 airlines assuring international flights to Portugal’s five airports," said Araujo.
He also invited UK visitors to return to celebrate the country’s culture, traditions, landmarks and history, as they have for decades with UK travellers forming "the primary source of inbound visitors for many regions in Portugal".