It said it would no longer argue that the law passed in 2011 was intended to discriminate against minorities.
But it did not withdraw altogether from a lawsuit that also argues that the law had a discriminatory effect.
According to reports, the law requires voters to show only certain forms of ID, including gun permits, but in other states - college IDs are not acceptable.
Last year, a federal appeals court ruled that the law had a discriminatory effect.
It said this was because the forms of ID required suited Republican-leaning white voters and excluded forms of ID that were more likely to be used by minorities and Democrat-leaning younger voters.
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