Judge Meron has ordered that Tadic be released from the tribunal's detention unit in the Hague district of Scheveningen "as soon as is reasonably practicable".
Tadic, 67, was sentenced to eight years in prison on October 17, 2003 for his individual responsibility for the expulsion of Bosnian Muslims and Croats from the Bosanska Posavina region of northern Bosnia in 1992, which qualified as a crime against humanity.
Explaining his decision based on Rule 125 of the tribunal's Rules of Procedure and Evidence, Meron cited among other things Tadic's good conduct while in detention and the remorse he had expressed at the trial.
Tadic voluntarily surrendered to the tribunal on February 14, 1998, being the first accused to do so.