Pakistan authorities withdrew a seven-day detention order on former prime minister Benazir Bhutto early on Friday, a top provincial government official told AFP.
"The detention order has been withdrawn but normal police security will stay with her," said Khusro Pervaiz, home secretary of Punjab province, of which Lahore is the capital.
"There is no restriction on her movement now," he added.
"The order was placed to stop Bhutto from leading a public rally in the wake of a very credible suicide attack threat. It was because of this that she was placed under house arrest.
"Now we have withdrawn the order because there is no more rally."
Bhutto was staying at the house of a close aide in the eastern city of Lahore, which was declared a sub-jail by the authorities.
Prison officials were deployed to the house but have now been withdrawn.
Police in riot gear were still at the house but officials said this was for for Bhutto's security.
Bhutto's Pakistan People's Party was not immediately available for comment.