Saif al-Islam Gaddafi, second son of the late deposed Libyan leader Col Muammar Gaddafi, is said to have been freed under an amnesty, in a move which could fuel further instability.
His father's preferred successor, he had been held by a militia in the town of Zintan for the past six years.
The Abu Bakr al-Siddiq Battalion said he had been released on Friday but he has not been shown in public.
A source has told the BBC he is in the Tobruk area of eastern Libya.
His lawyer, Khaled al-Zaidi, also said he had been released but would not say which city Saif al-Islam had travelled to for security reasons.
The Abu Bakr al-Siddiq Battalion said it was acting on a request from the "interim government".
That government - based in the east of the country - had already offered amnesty to Saif al-Islam.
However, he has been sentenced to death in absentia by a court in Tripoli, the west of the country, where control is in the hands of the rival, UN-backed Government of National Accord.
Saif Gaddafi still commands some support in Libya
Previous reports of Saif al-Islam Gaddafi's release proved to be false.
He is wanted by the International Criminal Court for crimes against humanity during his father's unsuccessful attempts to put down the rebellion.
The 44-year-old Saif al-Islam - who was controversially granted a PhD by the London School of Economics in 2008 - was captured in November 2011 after three months on the run following the end of Muammar Gaddafi's decades-long rule.
He was previously known for playing a key role in building relations with the West after 2000, and had been considered the reformist face of his father's regime.
But after the 2011 uprising, he found himself accused of incitement to violence and murdering protesters.
Four years later, he was sentenced to death by firing squad following a trial involving 30 of Gaddafi's close associates.
Latest Stories
-
Absa Bank, GNCCI partner to spotlight budget opportunities for private sector
1 hour -
Gov’t to sanitise Minerals Commission’s issuance of mining licenses – Lands Minister
1 hour -
Government’s commitment to corruption fight unwavering – Bampoe Addo
2 hours -
Physical activity can prevent non-communicable diseases – Volta Regional Minister
2 hours -
TOR Commerce Division exceeds revenue target for February
2 hours -
National Security uncovers alleged ECG cable and meter theft in Western Region
2 hours -
Interior Minister visits ministry’s agencies in Kumasi
2 hours -
Suspend Chief Justice if prima facie case is established – Ansa-Asare urges Mahama
2 hours -
2 remanded over robbery, unlawful possession of military attire
2 hours -
Unemployed man arrested for allegedly defrauding three individuals
2 hours -
AGI demands probe into ECG’s ‘Illegal’ imports which have gone missing
2 hours -
Ex-convict held for alleged sodomy and death threats
2 hours -
‘Our boxes are not for crime’ – BoG distances itself from misuse of currency containers
2 hours -
Wells of Hope: Rotary Clubs bring water to thirsty communities; Amenamu and Nkyensie
3 hours -
Boeing settles lawsuits with two 737 MAX crash victims’ families
3 hours