The stadium will now be at 75% capacity.
More than 60,000 fans will be allowed to attend the semi-finals and final of Euro 2020 at Wembley.
The news comes as UEFA confirms that the final stages of the tournament will be held at Wembley as planned. There had been rumours that
the governing body of European football were considering moving the semi-finals and final to Budapest because of fears that 2,500 VIPs set to attend the final would have to adhere to quarantine measures in the UK.
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The final three matches of the tournament had previously been set to see at least 40,000 fans in attendance as part of the third phase of the government's Events Research Programme.
The increase in attendance will see the largest crowd for a sporting event in the UK for more than 15 months.
UEFA President Aleksander Ceferin said that he was "grateful to the Prime Minister and the UK Government for their hard work in finalising these arrangements."
In a statement, Ceferin said: "It is great news that so many fans will be able to watch the final three matches of the EURO 2020 at Wembley.
"The last 18 months have taught us – both on and off the pitch – how integral fans are to the fabric of the game.
"This tournament has been a beacon of hope to reassure people that we are returning to a more normal way of life and this is a further step along that road.
"I am grateful to the Prime Minister and the UK Government for their hard work in finalising these arrangements with us, to make the tournament final stages a great success in Wembley."
FA Chief Executive, Mark Bullingham, added: "It is great that the Government has agreed to allow over 60,000 fans in Wembley for the final three matches of the tournament. It’s amazing how much atmosphere fans have been able to generate so far, so to have three times as many will be fantastic.
"We have always said that fans are the lifeblood of the game, so it’s brilliant that so many will get a chance to see the tournament finale. We hope that this programme lays the foundation for the safe return of fans in stadiums all across the country next season."
Some of the other events that will see increased capacities over the coming weeks include Wimbledon, the Challenge Cup Final and England's limited over fixtures with Pakistan and Sri Lanka.
