The convicted IRA bomber had been in custody since May 2011, when the former Northern Ireland Secretary, Owen Paterson, revoked her licence.
She was moved from Hydebank Prison to a hospital on medical advice last June. She is now at home with her family.
Marian Price was previously convicted for her part in the Old Bailey bomb in 1973.
When she was first sent back to prison, Owen Paterson said he made the decision to revoke her licence because the threat she posed had "significantly increased".
In a statement issued by her family yesterday they said they were happy to confirm she had been released.
She was arrested two years ago after she held the text of a speech for a masked man at a Real IRA rally in Derry, during which the man made threats against the security forces.
She was later charged with having supplied a phone used during the murders of soldiers Mark Quinsey and Patrick Azimkar, who were shot dead outside Massereene Army base in County Antrim.
Her deteriorating health led to her being transferred from prison to hospital last year.
The charges against her - providing a mobile telephone for a terrorist purpose and aiding and abetting a meeting in support of an illegal organisation - still stand.