Rupert Stadler, ex-chief executive of Audi, has been released from custody, according to a new report from Reuters.
The news outlet quotes a Munich court, which confirmed the executive was released on Tuesday. He was arrested in June, after prosecutors raised concerns he was trying to tamper with the ongoing Dieselgate investigation.
An appeal for freedom was rejected in August, as the "danger of obstructing justice" still loomed large.
According to the Munich appeals court, it Stadler is being investigated over the likelihood he "allowed the engines to be deployed and to be sold despite knowing about the manipulation or deliberately turning a blind eye on the manipulation".
Audi has highlighted the fact Stadler is innocent until proven guilty, but stood him down from his role upon arrest. Then, in September he was removed from the boards of both Audi and the Volkswagen Group because of his imprisonment.
Having joined Audi in 1990, Stadler became chief financial office in 2007, and took over as chief executive in 2010.