Christian publications are now allowed to use the word "Allah" as long as they state that the materials are only meant for Christians.
The cabinet's decision was that Christian publications were banned from using four words - Allah, Baitullah, Kaabah and solat (prayer) - unless the publications clearly stated that the materials were only meant for Christian followers.
"We decided to gazette the move recently. However, those who failed to adhere to this condition will have their publications seized by the ministry's enforcement officers.
"We will be firm to ensure compliance. It is only fair that they adhere to it," he said.
The controversy first broke out in late 2007 when the government banned the use of “Allah” in Christian Malay-language texts because it allegedly might confuse Muslims.
The Herald has challenged the ban in court.
The Herald publishes in English, Mandarin, Tamil and Bahasa Malaysia to cater to its multi-ethnic faithful. It has a circulation of 14,000 copies.