The Google-owned site blocked UK access to thousands of videos in March after it failed to reach a rights deal with PRS, which collects music royalties.
At the time, Patrick Walker, Emea director of video partnerships at Google, said YouTube would block music videos in the UK until it reached an agreement with PRS.
YouTube and PRS have announced that they have come to a "mutually acceptable" agreement, but did not reveal financial terms.
Under the agreement, YouTube will pay a lump sum to PRS covering the period from January 2009 to June 2012 and work out a new multi-year deal, according to Reuters.
The deal means that music videos from Universal Music Group, Sony Music Entertainment, EMI Group and thousands of independent labels will soon be accessible to YouTube users in the UK.
PRS and other music rights-holders have argued that YouTube should pay a higher fee because many users visit the site to watch music videos.
Music from Warner Music Group is still not officially available on YouTube in an ongoing dispute over payment terms.