Up to 10,000 Japanese fans will allowed into the venues hosting the 2020 Tokyo Olympics.
Fans from overseas are already ban from entering the Games, but it has confirmed that spectators from Japan will allowed in.
The number of spectators will be set at 10,000, provided they do not exceed 50% of the venue’s capacity.
Spectators are not allow to make loud noises or speak and must wear masks at all times inside the venue.
The Olympic Games will begin on 23 July, with the Paralympic Games starting a month later on 24 August.
A joint statement from the International Olympic Committee (IOC), the International Paralympic Committee (IPC), the Tokyo 2020 Organizing Committee, the Tokyo Metropolitan Government and the Japanese government said the number of spectators for the Paralympic Games will be confirmed by 16 July.
The decision to allow spectators was made despite a report by Japanese medical experts released last week that said holding the Games without spectators was the “least risky” and preferable option.
“There are many cases of spectator sporting events, both domestically and internationally,” said Kiyoko Hashimoto, chairwoman of the Tokyo 2020 organizing committee.
“By taking comprehensive measures and following government regulations, we believe we can hold the Olympic Games with spectators.
“The whole world is facing the same problems and we need to work together to overcome them.”
The five parties will consider further restrictions if the Covid-19 infection grows rapidly and affects Japan’s health system.
This could include a further reduction in the number of spectators at the venues.
There are fears that the Olympics could trigger an increase in coronavirus infections in Japan.
As a result, Prime Minister Yoshihide Suga last week encouraged the Japanese public to watch the Olympics on television rather than attend in person.
The state of emergency in Tokyo was lift on Sunday, five weeks before the start of the Olympics.
Emergency restrictions on Covid-19 were impose in the Japanese capital and other prefectures due to rising infections.
However, in some areas, including Tokyo, some “quasi-emergency” measures remain in place until 11 July.
On Saturday, a Ugandan athlete tested positive for Covid-19 for the first time since arriving in Japan.