Tánaiste Simon Harris has confirmed that Robert Pether who has been held in jail in Iraq for over four years has been released on bail.
The Australian national - who had been living in Elphin in Co Roscommon - was arrested in April 2021 and later jailed on fraud charges.
The United Nations had described it as an arbitrary detention.
Mr Harris said the development is "welcome news in what has been a long and distressing saga for Robert's wife, three children and his wider family and friends".
Mr Harris said the Foreign Minister of Iraq, whom he had spoken to last month to urge Mr Pether's release, had informed him of the news.
"I was informed that Robert has been released on bail and for the moment he remains in Iraq, but I welcomed this as a first step to his being allowed to return to his family in Roscommon.
"I also spoke ... with Robert’s wife, Desree Pether, about this positive development."
Mr Harris thanked Irish diplomatic officials based in the region for their continued work on the case.
"We remain concerned about Robert's health and outstanding charges, but I am hopeful now of a positive resolution in this case," he added.
Mr Harris spoke to Mr Pether and said he will keep in touch with the family in the period ahead.
Mr Pether's wife - who has continuously campaigned for his release - described the development this evening as a "very small step in the right direction".
Ms Pether said her husband is very sick and has been for months and the family need him home.
However she said "there is a still a travel ban" in place.
"Enough is enough. Three international courts have ruled in his employer's favour and said there is no grounds for imprisonment," she added.
Ms Pether thanked everyone who contributed to the development and said her husband needs to be at home so his family can help him heal and so that he does not get any sicker.
