Once seen as a future leader, he was jailed on sodomy and corruption charges after falling out with the government.
Malaysia’s new Prime Minister Mahathir Mohamad sought a pardon for Mr Anwar, which was granted on Wednesday morning.
Mr Mahathir has promised to step aside for Mr Anwar to become prime minister within two years.
The politician was jailed for a second time three years ago on what he said were trumped-up sodomy charges.
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