The organizers submitted a formal application on Wednesday to organize this year's march on June 27.
According to the police, there is "no reason to ban the gathering".
It was under the rule of nationalist-conservative Viktor Orbán that Hungary passed laws last year that made Pride parades illegal. Despite, or perhaps because of, the ban, the parade still attracted record numbers of participants.
Newly elected Prime Minister Péter Magyar has previously expressed support for equality and freedom of assembly, but has not yet specifically endorsed Pride or taken any steps to dismantle his predecessor's LGBTQ-related laws.
