Women-led protests, labelled "riots" by the authorities, have swept Iran since the 22-year-old Iranian of Kurdish origin died on September 16, three days after her arrest by the morality police in Tehran.
Demonstrators have burned their mandatory hijab head coverings and shouted anti-government slogans, and a growing number of women have failed to wear the hijab, particularly in parts of Tehran.
"Morality police have nothing to do with the judiciary and have been abolished", Attorney General Mohammad Jafar Montazeri was quoted as saying by the ISNA news agency.
His comment came at a religious conference where he responded to a question on "why the morality police were being shut down", the report said.
The move represents a rare concession to the protest movement, and authorities have also acknowledged the demoralising effect of an economic crisis spurred by US sanctions.
"The best way to confront the riots is to... pay attention to people's real demands," said the parliament praesidium council spokesman Seyyed Nezamoldin Mousavi, referencing "livelihoods and the economy" in the Islamic republic.
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