Zimmerman, who was charged with second-degree murder in the shooting death of 17-year-old Trayvon Martin, is currently free on $1 million bond.
Besides dropping the monitoring, the defense wanted the former neighborhood watch volunteer to be able to live outside Seminole County. Defense attorney Mark O'Mara argued that Zimmerman, 28, should not be restricted to Seminole County, saying it makes it difficult for him to meet with attorneys and expert witnesses.
In objecting to the defense request, lead prosecutor Bernie De La Rionda reminded the judge that Zimmerman had lied to the court about how much money he could provide for bond, and that he did not mention that he had a second passport.
The prosecution also argued that the GPS was as much for Zimmerman's protection as it was for the state's benefit.
Zimmerman has pleaded not guilty, claiming self-defense under Florida's "stand your ground" law. A trial date has been set for June 10.
ABC News and The Associated Press contributed to this report.