That suit, Hassan v. City of New York, was dismissed in February and is currently under appeal.
The New York chapter of the Council on American-Islamic Relations, also welcomed the disbanding of the surveillance unit.
"This is an important first step. However, the damage of unconstitutional mass spying on people solely on the basis of their religion has already been carried out and must be addressed," said Board President Ryan Mahoney.
"We need to hear from the mayor and NYPD officials that the policy itself has been ended and that the department will no longer apply mass surveillance or other forms of biased and predatory policing to any faith-based community," he said.
"Our administration has promised the people of New York a police force that keeps our city safe, but that is also respectful and fair," said Mayor Bill de Blasio.
"This reform is a critical step forward in easing tensions between the police and the communities they serve, so that our cops and our citizens can help one another go after the real bad guys," he said in a statement Tuesday.
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