(Ahlul Bayt News Agency) - Mansor Almaribe, a Shia Muslim, was detained while praying in the Saudi Arabia on a Hajj pilgrimage to Medina, west of the capital Riyadh, in November.
The father-of-five's family feared he would die in jail if his sentence was not waived due to his ailing health.
"We are feeling so happy — he is finally coming home," his son Isaam Almaribe, 21 said.
Mr Almaribe is due to arrive in Melbourne tomorrow morning.
Foreign Minister Kevin Rudd has been in regular contact with Saudi officials to secure Mr Almaribe's release.
Federal Liberal MP for Murray Sharman Stone said Mr Almaribe's case had attracted strong community support.
Petitions with hundreds of signatures from local and interstate people pleading for the father's release were presented to Saudi officials at a meeting before Christmas, Ms Stone said.
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