The Cairo Criminal Court ordered the release of Alaa and Gamal Mubarak on Thursday, as the embezzlement case is pending re-trial, state-media reported.
The two brothers must assure their place of residence to the court.
They are accused of aiding their father with appropriating EGP 125m from the money allocated to the presidential palaces.
Former president Hosni Mubarak was found guilty of seizing the money and was sentenced to three years imprisonment in May 2014. His sons were each sentenced to four years in the same case.
The court decision came after the family’s lawyer,Farid Al-Deeb submitted an appeal against their detention. The Court of Cassation had ordered a retrial for the two brothers earlier this month. According to state-media, the court “cancelled” its earlier verdict.
After his ousting in February 2011, Mubarak and his sons have been taken into custody in April 2011 overseveral charges. On 29 November the Cairo Criminal court dropped the “killing of protesters” case against Mubarak, and acquitted him on graft charges.
Al-Deeb said last week that he expects Mubarak to be released, as the he served his three-year sentence in the embezzlement case.