The government does not want to ban Uber, but wants to ensure that the ride-sharing app sticks to rules ensuring fair competition for all taxi companies.
These comments make a U-turn in the government's stand against the company.
State secretary of the Ministry of National Development János Fónagy and other officials met with representatives from Uber for the first time in months.
Fónagy praised the company's "exceptionally modern" innovations, which he said have been mostly adopted by other taxi firms but said all companies had to obey the rules.
Hungary's parliament is debating legislation increasing penalties for unlicensed drivers and banning apps like Uber.
Uber said it hopes Hungary will wait for upcoming guidelines from the European Union on "collaborative economy platforms" like Uber and Airbnb, which facilitates short-term rentals, before deciding.
