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A military court ordered Wahid freed next month, accepting his lawyer's claim that he deserved to have his sentence reduced for good behaviour, the Ynet news website reported.
The prosecution had argued that releasing the soldier early would harm Israel's diplomatic ties with Britain, Ynet said.
A military commission found that Wahid's behaviour had changed and that he no longer represented a danger, a military source said.
The commission had recommended that the soldier, who had served 80 percent of his original sentence, be released, the source added.
Hurndall, then 22, was shot in the head in the Rafah refugee camp in April 2003. He died in January 2004 in a London hospital after spending nine months in a persistent vegetative state.
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The prosecution had argued that releasing the soldier early would harm Israel's diplomatic ties with Britain, Ynet said.
A military commission found that Wahid's behaviour had changed and that he no longer represented a danger, a military source said.
The commission had recommended that the soldier, who had served 80 percent of his original sentence, be released, the source added.
Hurndall, then 22, was shot in the head in the Rafah refugee camp in April 2003. He died in January 2004 in a London hospital after spending nine months in a persistent vegetative state.
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