Deposed Egyptian leader Hosni Mubarak will leave jail after a court's order. Mubarak will then be put under house arrest.
The prime minister's office said in a statement. The decision was authorised under Egypt's Emergency Law recently enacted under a security crackdown on Islamists, it added.
Citing a security source, the state news agency said that Mubarak would "likely" be transported to one of the state's vital installations or one of two military hospitals where he will be guarded under heavy security.
By keeping Mubarak under house arrest, Egyptian leaders may be trying to show they will not be too lenient with him to avoid angering the many Egyptians who held mass protests that led to the end of his iron rule in 2011.
Mubarak, 85, was sentenced to life in prison last year for failing to prevent the killing of demonstrators. But a court accepted his appeal earlier this year and ordered a retrial.
Political turbulence has kept Egypt on edge for months. At least 900 people, including 100 soldiers and police, have been killed in a crackdown on Mursi supporters in the past week, making it the country's bloodiest internal episode in decades.
Mubarak's release could add to tensions in a country where the Muslim Brotherhood has accused the army of trying to bring back the old government.
Mubarak is still being retried on charges of complicity in the killing of protesters during the revolt against him, but he has already served the maximum pretrial detention in that case.
The court ruling removed the last legal ground for his imprisonment in connection with a corruption case, following a similar decision in another corruption case. Mubarak will not be allowed to leave Egypt and his assets remain frozen.
