Acclaimed US artist Spencer Tunick wanted to stage the shoot on top of one of the firm’s Melbourne stores on a Saturday.
But bosses originally refused permission, saying it would be too disruptive to shoppers.
However, following an online petition, the retailer has granted approval for the shoot to take place on a Monday morning instead.
The event will now take place on July 9 as part of a city-wide arts festival.
A Woolies spokesman said: "In further discussions with the festival organisers, they indicated a willingness to be flexible with dates and times to ensure the shoot could happen without inconveniencing our customers during busy weekend trading.”
So far 11,000 people have volunteered to bare all, but it is likely only around 500 will be able to take part.
Tunick has previously orchestrated around 120 similar shoots.