The match scheduled for March 24th was to be played in Amman, Jordan, or Qatar, because world football's governing body FIFA had forbidden matches in Iraq over security concerns.
"We received on Sunday an official notification from FIFA confirming the lifting of the ban for all Iraqi stadiums," Ahmed al-Moussaoui, spokesman for the Iraqi Football Association, told AFP.
"In the future we can host matches either in Al-Madina Stadium in the capital" or at other stadiums, Moussaoui said.
In January, Baghdad's packed Al-Madina Stadium hosted a friendly between the Iraqi team and Uganda. That was the first international match in the capital since Liberia visited in 2013, when the ban took effect, FIFA said on its website.
"FIFA officially agreed to holding a match between our national team and the Emirati side at Al-Madina Stadium", Adnan Dirjal, Minister of Youth and Sport, said on Sunday.