Savinovic was ordered not to leave Bosnia-Herzegovina.
"There were no grounds for keeping Savinovic in custody. His passport was seized until the completion of the proceedings," the prosecutor Djikic said.
Another suspect in the case, Vlatko Milicevic, has also been released in Bosnia-Herzegovina, while three more suspects, Mario Milicevic, Vlado Curic and Dalibor Prgomet, are in Croatia with two of them being remanded in custody.
Jelavic, a former Croat member of Bosnia-Herzegovina's collective presidency, was abducted in Zagreb, where he lives, on 8 April this year. His kidnappers transferred him to Bosnia, but a day later he managed to escape and return to Croatia.
Jelavic had been a member of the Bosnian presidency until 2001 when he was removed from office by the international community's High Representative, Wolfgang Petritsch.
In mid-2005, Jelavic was sentenced to ten years in prison for embezzlement of funds Croatia was sending to Bosnia in aid to the Croats. Having dual Bosnian and Croatian citizenship, he escaped to Croatia, whose constitution does not allow the extradition of Croatian citizens. In July 2006, following his appeal, the trial court verdict was quashed and a retrial was ordered.
He was also tried in the so-called "Croat self-rule" case, along with the former Defence Minister of the Bosnian Federation, Miroslav Prce, and the former Deputy Commander of the Bosnian Federation Army, General Dragan Curcic. They were all cleared of the charges.