The security and intelligence service Säpo confirmed the release to media on Friday.
"Säpo's investigations have led to the conclusion that the Prosecutor has determined that there is no longer reason to keep this man in custody," Simon Bynert, Säpo's press spokesperson told news agency TT.
Prosecution spokesperson Annika Collin says their suspicions against the suspect became weaker after they had carried out investigation work.
The man's defence lawyer, Leif Silbersky, criticised the investigation and said that his client should never have faced a custody hearing last Thursday.
"We should never have had the detention on Thursday and what has happened since, shows that it was completely unnecessary," he told TT.