The 3km zone was introduced following the outbreaks of the disease in two poultry flocks in the county last month.
Around 3,800 turkeys were culled following confirmation of bird flu in a flock near Clones, close to the border between Co. Monaghan and Co. Fermanagh, on November 13.
A similar number of turkeys were culled after the disease was detected in a second flock in the county on November 22.
No further outbreaks of the disease have occurred in poultry since the second confirmed case four weeks ago.
However, the department said that a 10km surveillance zone will remain in place around the locations of the two outbreaks to mitigate the risk of spreading bird flu.
This means that there are additional controls on the movement of poultry and poultry products within this area.
Movements into and out of the surveillance zone are also subject to licensing from the department.
In a statement, the department said that a significant risk remains of further outbreaks and strict biosecurity is essential on all poultry and captive bird holdings.
Poultry owners are being reminded to review and, if necessary, enhance their biosecurity procedures and remain vigilant for any signs of disease.
On November 7, Minister for Agriculture, Food and the Marine, Charlie McConalogue, signed a housing order for all poultry and captive birds.
The department said that contact with wild birds or environmental contamination are major risk factors for poultry.
A case of bird flu was confirmed in a buzzard in Co. Laois on December 2, which DAFM said demonstrates that the virus is present in wild birds in inland areas of Ireland following cases found in wild birds in coastal areas since July.
The department reiterated that bird flu poses no food safety risk for consumers and that properly cooked poultry and poultry products, including eggs, are safe to eat.
Since October 1, there has been one outbreak of bird flu in captive birds in Northern Ireland, 129 in England, 10 in Scotland and three in Wales.
