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Canberra had lobbied intensely for a royal pardon, and Australia's foreign affairs department said Nicolaides had been freed this week.
"I can confirm that the King of Thailand has granted a pardon to Mr Nicolaides," a spokesman told AFP.
"Our embassy in Bangkok and consular staff in Canberra are working with the (Nicolaides) family on arrangements to bring Mr Nicolaides back to Australia as soon as possible.
"We appreciate the expeditious handling of the pardon by Thai authorities."
The writer's barrister, Mark Dean, said Nicolaides walked free late Friday night. He was expected to arrive in Australia on Saturday, he added.
"The Australian government and the Thai government have been working together very closely on the resolution of Harry's case," said Dean.
Nicolaides' brother Forde Nicolaides said the family was "ecstatic" at the outcome.
"Our emphasis to the Thai government was ... for them to consider Harry's case compassionately and expeditiously," he told national newswire AAP.
"I think everyone was on the same page, as they have been reasonably expeditious with the application. We are very grateful for that."
Nicolaides said his brother had called from Bangkok airport late Friday and assured him he was "reasonably fit despite his ordeal."
"He is in good spirits and looking forward to arriving home. He cannot wait to see his family."
Nicolaides, who had previously worked as a university lecturer in Thailand, has been in prison since his arrest at Bangkok airport's departure lounge on August 31.
The charge against him related to a passage in a novel published in 2005 titled "Verisimilitude," of which Nicolaides' family says only a handful of copies were sold.
Thailand has some of the strictest laws in the world protecting revered King Bhumibol Adulyadej and his family from insult, but media freedom groups have accused authorities of abusing the law to suppress dissent.
Thai authorities have banned nearly 4,000 websites in recent months for allegedly insulting the monarchy. Police said last week that more than 17 criminal cases of insulting the royal family are currently active.
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"I can confirm that the King of Thailand has granted a pardon to Mr Nicolaides," a spokesman told AFP.
"Our embassy in Bangkok and consular staff in Canberra are working with the (Nicolaides) family on arrangements to bring Mr Nicolaides back to Australia as soon as possible.
"We appreciate the expeditious handling of the pardon by Thai authorities."
The writer's barrister, Mark Dean, said Nicolaides walked free late Friday night. He was expected to arrive in Australia on Saturday, he added.
"The Australian government and the Thai government have been working together very closely on the resolution of Harry's case," said Dean.
Nicolaides' brother Forde Nicolaides said the family was "ecstatic" at the outcome.
"Our emphasis to the Thai government was ... for them to consider Harry's case compassionately and expeditiously," he told national newswire AAP.
"I think everyone was on the same page, as they have been reasonably expeditious with the application. We are very grateful for that."
Nicolaides said his brother had called from Bangkok airport late Friday and assured him he was "reasonably fit despite his ordeal."
"He is in good spirits and looking forward to arriving home. He cannot wait to see his family."
Nicolaides, who had previously worked as a university lecturer in Thailand, has been in prison since his arrest at Bangkok airport's departure lounge on August 31.
The charge against him related to a passage in a novel published in 2005 titled "Verisimilitude," of which Nicolaides' family says only a handful of copies were sold.
Thailand has some of the strictest laws in the world protecting revered King Bhumibol Adulyadej and his family from insult, but media freedom groups have accused authorities of abusing the law to suppress dissent.
Thai authorities have banned nearly 4,000 websites in recent months for allegedly insulting the monarchy. Police said last week that more than 17 criminal cases of insulting the royal family are currently active.
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