The scrapping of the isolation requirements is part of a decision to downgrade Covid-19's status to an endemic disease from a severe respiratory disease and follows a similar move by China on January 8.
"I have decided to scrap the quarantine order for Covid-infected patients. This is one of the important steps towards normalcy," city leader John Lee told a legislative meeting on Thursday.
People in Hong Kong are, however, still required to wear masks unless exercising.
Last week, high-speed rail services between Hong Kong and mainland China resumed for the first time since the beginning of the pandemic.
The re-opening comes amidst a massive wave of infections on the mainland following China's abrupt U-turn on its "zero-Covid" policy.