The Grammy-award winning dance music producer was scheduled to perform in Mumbai on Friday as part of a four-city India tour.
But police abruptly called off the concert, saying organisers had not complied with certain formalities and had not shared their security plan with officials.
The Mumbai-based promoter Sunburn confirmed the cancellation as fans started gathering outside the concert venue.
But hours later Sunburn and police managed to iron out their differences, paving the way for a Sunday afternoon performance in Mumbai that will be followed by another show in New Delhi that evening, the organisers said late on Friday.
"David Guetta will be doing two shows on Sunday in two different cities. We are complying with all the regulatory requirements as prescribed by the authorities," they said in a statement posted on Twitter.
"The existing Mumbai tickets will be valid for the show on Sunday."
Guetta, best known for hits like "Titanium" and "When Love Takes Over", has a sizeable following in India with thousands expected to attend Sunday's concerts.
The 49-year-old musician was supposed to kick-off his India tour in the IT hub of Bangalore on Thursday but authorities cancelled the gig, saying it clashed with a local election and that security would be a problem.
"(Bangalore) cancellation has been completely out of my control and I just feel very sorry for all the fans that were looking forward to attend," Guetta had said in a statement posted online.