The health care system is starting to stabilize in the wake of limitations imposed on Jan. 5, Ford told a news conference, saying Omicron cases should peak later this month.
"We can be confident that the worst is behind us and that we are now in a position to cautiously and gradually ease public health measures," Ford said.
The province will allow restaurants, malls, and cinemas to operate with a 50% capacity limit from Jan. 31, before removing more curbs in February and March.
"While February will continue to present its own challenges, given current trends these are challenges we are confident we can manage," Ford said.
In neighbouring Quebec, premier Francois Legault said he would maintain restrictions to help protect the health care system even though Omicron cases had peaked.
"I understand we are all tired, but lives are at stake. I'm currently under a lot of pressure to remove measures, but my duty is to be responsible to protect the lives of Quebecers," he told a news conference.
Ontario and Quebec together account for around 61% of Canada's population of 38.2 million people.
(Reporting by Ismail Shakil in Bengaluru and David Ljunggren in Ottawa; Editing by Tomasz Janowski and Grant McCool)