The decision means Palestinians can freely leave Gaza. It also applies to Palestinians in the West Bank and Jerusalem.
Gaza is ruled by Hamas, a branch of new Egyptian President Mohammed Morsi's Muslim Brotherhood. The blockade was imposed after Hamas took control of Gaza by force in 2007. It banned most Palestinians from leaving.
The officials said the decision was applied early on Monday for the first time, when seven Palestinians waiting at Cairo International Airport were allowed into Egypt without the usual security clearances and visas. The officials spoke on condition of anonymity because they were not authorised to brief reporters.
No formal announcement was made.