City officials said it was necessary to ensure public safety.
"The boycott never intended to impede public safety," Councilman Richard Alarcon said. "It intended to, if anything, send forth a message to Arizona, but not to the negative impact of the people of Los Angeles."
The council voted 13-0 to extend the city's contract with American Traffic Solutions by 10 months. The contract had been scheduled to expire June 30.
The decision came after Sgt. Matt McWilly, photo red light coordinator for the Los Angeles Police Department, testified about the program's effectiveness.
"Every year, the photo red light program has showed a decrease in red light-related traffic collisions, with a 40 percent reduction in 2008," he said.
During the two years prior to the installation of 32 red light cameras across the city, there were nine traffic fatalities at those intersections, five of which were caused by drivers speeding through a red light, McWilly said.
Since the red light cameras were installed, there have not been any red light-related fatalities at those intersections.
"That's a testament to the cameras," McWilly said.
The council approved the economic boycott of Arizona on May 12 in response to the passage of Arizona Senate Bill 1070, which has not yet taken effect. The law gives Arizona law enforcement personnel the power to check the immigration status of suspects they have stopped for other reasons, if there is a reasonable suspicion they are in the country illegally.
It specifically bars law enforcement from racial profiling.