NATO-member Turkey is on heightened alert after a series of bombings which have killed more than 80 people, most recently a suicide bombing in Istanbul that killed five on Saturday.
The Baglar district governor's office in Diyarbakir said the six-day-old curfew in the Kaynartepe neighborhood was being lifted from 6 am (0400 GMT). It had been declared after moves by Kurdistan Workers Party (PKK) militants to set up barricades, dig ditches and plant explosives there, but the statement said security force operations had achieved their goal.
Violence has surged in the mainly Kurdish southeast since a 2-1/2 year ceasefire with the PKK collapsed in July. The militants have focused their strikes on security forces in southeastern towns, triggering a series of curfews, Reuters reported.
Security sources said security measures in Diyarbakir were raised to their highest level ahead of the Nowruz celebrations, which at the height of the PKK insurgency in the 1990s were marked by clashes between protesters and security forces.
Security sources said hundreds of police were involved in operations to stop and search vehicles at various points around Diyarbakir overnight and carried out identity checks on guests at hotels and cafes in the area.