Australia's prosecution chief on Friday dropped terrorism charges against Indian doctor Mohammed Haneef following a review of the case, more than three weeks after he was arrested in connection with last month's failed car bombings in London and Glasgow.
27-year-old Haneef, who was arrested on July 2 in Brisbane, was charged with "recklessly" supporting a terrorist group.
Prosecutors withdrew the case against the Indian doctor at a Brisbane Magistrates' court hearing.
The case was reviewed by the Commonwealth Director of Public Prosecutions Damian Bugg, who said the charges have been dropped because a "mistake" was made in the case.
"On my view of this matter a mistake has been made and I will examine that because to me the primary decision to make was to determine whether or not this prosecution was on sound footing or not, I've made that determination," he said at a press conference.
"I'll now take further steps to inquire as to how that mistake occurred," he was quoted as saying by the Australian Broadcasting Corporation.
On Thursday, the former chairman of the National Crime Authority Peter Faris had said the DPP's decision to review the case suggested that the case was about to collapse.
"This is the end of the case against Haneef," he said.
"I have no doubt that the reason that Bugg has intervened is to find a way out of the impasse that the DPP finds itself in, which is, to put it bluntly, they have no case," Faris added.
It is unclear what will now happen regarding the cancellation of Haneef's work visa, but his cousin Imran Siddiqui, who is in Australia to provide him moral support, says the family will fight to clear his name completely.
Sky TV channel in Melbourne reported that Haneef will be shifted from the Brisbane jail to the immigration detention centre in Sydney as he had no visa currently.
Also, he is most likely to be deported to India, it said.
Bugg said he withdrew the charges because he was satisfied "there was no reasonable prospect of conviction."
"In the magistrate's court in Brisbane, proceedings against Dr Haneef were discontinued on my motion," Bugg told reporters in Canberra.
Haneef was charged with supporting a terrorist group because he gave his mobile phone SIM card to a second cousin Sabeel Ahmed, an Indian doctor also held in Britain over the failed UK terror plot, in July last year.
A Brisbane court had ordered Haneef's release on bail last week, but Immigration Minister Kevin Andrews kept him in prison by cancelling his visa on character grounds, based on information provided by the federal police.
Australian Federal Police Commissioner Mick Keelty told reporters he would not revise his advice to the minister based on which Haneef's visa was cancelled, saying, "The grounds on which the AFP provided advice to the minister for immigration have not changed."
Asked whether the AFP would apologise, he said, "The matter of apology to Dr Haneef is not a matter with AFP."
Immigration Minister Andrews refused to step down over the issue.
"I don't think I have done anything wrong. I am confident as I said I had in place safeguards. I am still confident about those safeguards," he told reporters.
"To resign when the task I have just performed is still open, is stupid. Do you think I have a view about this task or hide from the fact that someone was charged when I, after examination of matters, was satisfied there were no reasonable prospects of conviction," he said.
The Australian Broadcasting Corporation earlier reported that Haneef's lawyers have vowed to oppose any move to deport the doctor following cancellation of his visa earlier this month.