The 20lb crustacean was the focus of tug of love between animal rights activists Peta and staff at the City Crab and Seafood.
But after initially blocking the bid for freedom, restaurant bosses have agreed for George the giant lobster to be transported to the coast.
The lobster was captured off the coast of Newfoundland in Canada a week-and-a-half ago and shipped to New York.
But having survived a stint in captivity, George is now on the road to freedom.
From the New York restaurant he will be driven to Maine by Peta members and allowed to reacquaint himself with the sea.
Ingrid Newkirk, president of Peta, said: "We applaud the folks at City Crab and Seafood for their compassionate decision to allow this noble old-timer to live out his days in freedom and peace.
"We hope that their kind gesture serves as an example that these intriguing animals don't deserve to be confined to tiny tanks or boiled alive."
Keith Valinti, manager of City Crab and Seafood, said: "We never intended him to be sold, just draw attention to the restaurant, and he did.
"We have no problem releasing the lobster."