She was serving a 20-year sentence for crimes against the state for her role in post-electoral violence in 2010 and 2011 that left 3,000 people dead.
President Alassane Ouattara granted amnesty to 800 political prisoners during a televised address on the eve of the country’s Independence Day.
Supporters are overjoyed and awaiting the acquittal of her husband Laurent Gbagbo in the International Criminal Court and to lead them once more.
She was acquitted on separate charges of war crimes and crimes against humanity last year, but that decision was overturned two weeks ago.
He said the amnesty decision shows a commitment to peace and reconciliation in the country; and the gesture has been greeted with positive reactions across the country.
The move appeared calculated at soothing political tensions ahead of 2020 elections that many fear could turn violent, as some past polls have, according to Reuters.
Ivory Coast is Francophone West Africa’s largest and most successful economy, and the world’s leading cocoa producer, but the tendency of its politicians to exploit disputes over land and ethnicity makes it volatile around election time.