CBS News Correspondent Kelly Cobiella reports the judge ordered Joran van der Sloot to be released even though he remains a suspect.
Joran van der Sloot, 18, could be released from jail as early as Saturday and remain free pending the outcome of the probe, said Antonio Carlo.
The judge's decision "only has to do with the pretrial detention. The primary condition is he has to remain available to police," Carlo said.
Court officials couldn't be reached and the prosecutors office declined to comment, saying it hasn't received the entire order.
"A press release will be sent out only when we have gotten all of the decisions made by the judge of instruction. Most probably this will be tomorrow morning," the office said in a statement.
Van der Sloot was arrested June 9 along with two friends, Surinamese nationals Satish Kalpoe, 18, and Deepak Kalpoe, 21, on suspicion of involvement in Holloway's disappearance. All three have denied any connection to the disappearance.
The Kalpoe brothers were released on July 4 but were re-arrested last week.