Nissan Motor’s ousted chairman Carlos Ghosn, may soon be released from detention.
A Tokyo court unexpectedly decided not to extend his detention.
He has been confined since his arrest for alleged financial misconduct.
The Tokyo District Court also said it decided against extending detention for Greg Kelly, a former Nissan executive who was first arrested along with Ghosn on Nov. 19.
Lawyers for both men were not immediately available for comment.
Ghosn has been indicted for allegedly understating his income over a five-year period from 2010. He was re-arrested on Dec. 10 for the same alleged crime covering the past three years. The 10-day detention period in the second instance ran out on Thursday.
The court had widely been expected to extend the detention, as granting bail to suspects who insist on their innocence is highly unusual in Japan.
Public broadcaster NHK said Ghosn could be released on Thursday or Friday if any appeal by prosecutors is rejected by the court and bail is granted.
It was not immediately clear how much bail would be, meaning it was still uncertain whether Ghosn's release was possible.
A Nissan spokesman declined to comment on the court's decision.