The authority said the move comes in a bid to "keep prices down" once PCR tests are removed.
From "late October", the government said that eligible fully vaccinated passengers returning from a non-red list country will have the option to replace their day two PCR test with a cheaper lateral flow test, followed by a free PCR if positive.
Health secretary Sajid Javid said the UK’s "robust" border measures have "helped to protect the progress" of the vaccination programme.
"It is because of this success both here and around the world that we can safely open up travel further and we can visit friends and family abroad," he added.
"We’re now making it easier and cheaper for people to travel by allowing fully vaccinated travellers from non-red list countries to use lateral flow tests on day two of arrival, as long as they provide proof of use."
An exact date as to when the testing overhaul will come into effect has not been confirmed.
On Thursday (7 October), the Department for Transport removed South Africa from the red list and slashed the category from 54 countries to just seven.
