An American official is to leave the US embassy in Delhi at India's request, amid a worsening diplomatic row.
The US State Department said it deeply regretted the move and hoped that it would bring closure to the case.
The BBC reports the row erupted after an Indian diplomat was arrested in New York on 12 December on charges of visa fraud and underpaying her housekeeper.
India demanded an apology after Devyani Khobragade, 39, was handcuffed and strip-searched following her arrest. It refused to waive her immunity.
Ms Khobragade has always denied any wrongdoing.
On Friday she was indicted by a federal grand jury in Manhattan, but was also granted immunity by US officials, paving the way for her to return to India.
The BBC reports she arrived back in Delhi on Friday evening.
