The Bolivian government and mutinous police reached an agreement Wednesday morning that will return the officers to duty, the state-run ABI news agency reported.
Bottom-rank officers received the pay raises they sought, the agency reported.
The officers began to mutiny seven days ago.
A representative for the police, Esther Corson, said that the agreement was reached with the Bolivian people in mind because "it was time" to restore police services to the public.
All of the officers will return to their units and their police duties, Corson said.
A deal had originally been reached on Sunday between the two parties, but the police officers rejected it, saying their leaders had not consulted them before signing.
While government representatives negotiated with the officers, other Bolivian leaders accused the police of a conspiracy and spoke of fears of a coup.