"The initial circumstances pointed at him and there were troubling circumstances that have been clarified after questioning him," Ihrman tells Swedish Radio News.
"However, the investigation continues, as there are still reasons to believe that a terrorist crime has been planned. We will keep looking into this in order to clarify the details and bring somebody before the court for the crime," the prosecutor's office writes in an online statement.
The suspect's lawyer, Ola Salomonsson, tells Swedish Radio News that he is very happy for his client.
"I'm very glad that this happened and that it didn't move forward," he says.
"I've talked to the prosecutor and the wording is that 'he is no longer under suspicion'. This means that he will not be investigated further after being released. He is no longer suspected of the crime, which is an important message for the Swedish people," Salomonsson added.
Moder Mothanna Magid was arrested Thursday afternoon in the northern town of Boliden on suspicion of preparation to commit a terrorist offence. The arrest came after a nationwide manhunt during the day.
Swedish prosecutors alleged that he was plotting a terrorist attack in Stockholm. The 22-year-old was arrested on "good grounds" of planning an attack, the second lowest of four levels of criminal suspicion in the Swedish legal system.
As more details emerged about the young man during the investigation, some raised doubts or remained unconvinced he was a danger to the country.
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