Remaining lockdown measures, such as the closure of bars, restaurants, shopping complexes and bans of public gatherings of more than 10 people, will stay in place for at least another month.
The Scandinavian country, which has over 5,000 cases of coronavirus and a total of 237 fatalities, has seen deaths and hospital admissions stabilize in recent days.
But Denmark's Prime Minister, Mette Frederiksen, warned the plan will only work if lockdown rules were gradually eased.
Speaking at a press conference earlier this week, she said: 'This will probably be a bit like walking the tightrope.
'If we stand still along the way we could fall and if we go too fast it can go wrong. Therefore, we must take one cautious step at a time.
In an interview with DK last week, Ms Frederiksen said the government was hoping for a 'gradual, controlled and quiet reopening of Denmark'.