The council's U-turned on a decision to ban horse-riding in Castlewellan Forest Park.
It's understood the ban was enforced in October on health and safety grounds, without consultation.
Walkers, joggers and cyclists also use the park.
A Facebook group set up on Friday against the move, gained almost 3,000 supporters in two days.
Newry, Mourne and Down district council will now consider "accommodating" horse-riding.
In a statement it announced it's intention to commission a study, with a view to putting infrastructure in place for a "multi-use forest park".
During the review horse-riding will be allowed in areas identified by the Mourne Heritage Trust.
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