With the seven-hour curfew relaxation here passing off peacefully today, authorities said the army was likely to be withdrawn from the city from Tuesday.
The city remained totally peaceful on Sunday, Police Commissioner Deepak Swarup said.
"The army will be withdrawn from the city by Tuesday but a final decision will be taken tomorrow after monitoring developments," he said.
Swarup said curfew would be further relaxed for nine hours tomorrow from 8 am to 5 pm in all six police station areas that were affected by violence following the demolition of a dargah by civic authorities on May 1.
The army has already been withdrawn from Raopura and Karelibagh areas.
Six people were killed and over 60 injured in police firing and clashes last week.
During the curfew relaxation on Sunday, many shops remained opened despite it being Sunday. Bhavik Rawal, a shop owner in Dandiya Bazaar, said he had opened his establishment after six days.
"We lost business worth thousands of rupees due to the disturbances," he said.
The Congress party organised prayers for peace by leaders of all religions. Congress leader Arjun Modhvadia offered condolences to those whose kin had died in the violence and appealed to the people to maintain calm.
Human rights activists have started a survey of religious places of Vadodara. Trupti Shah of the People's Union for Civic Liberties said it would ascertain which religious places were constructed before 1947 in view of the Supreme Court's order to maintain status quo for such shrines.