Mugabe died this month aged 95 and a funeral was held in the capital Harare.
The government had resisted his family’s wish for him to be buried in his home region of Zvimba, deciding that he should lay in Heroes Acre – a national monument and burial ground.
The family eventually consented, but on Thursday the government backtracked.
It was not immediately clear what prompted the late change in plans. The Mugabe family had appeared content with the burial at Heroes Acre, after it was agreed that a mausoleum would be built for the former leader.
In a statement published on Thursday, Information Minister Nick Mangwana said the change was in line with policy “to respect the wishes of families of deceased heroes”.