Inderjit Singh Reyat was charged with perjury in 2006 for repeatedly lying during his testimony at the trial into the bombing deaths of 331 people, mostly Canadians.
Reyat was found guilty in 2010 and sentenced to a record nine years in prison, or seven years and seven months after accounting for time served.
Under the law, offenders must be granted statutory release after they have served two-thirds of their sentence.
Parole Board of Canada spokesman Patrick Storey said Reyat must abide by several conditions as part of his release, including not possessing any extremist propaganda or possessing any components used to build an explosive device.
He is also not allowed to contact victims' families or anyone who is believed to hold extremist views. He will be monitored by a parole officer and must complete counselling.
Reyat is set to serve the rest of his sentence, which ends in August 2018, at a halfway house. Storey said he could not disclose the location of the residence due to privacy legislation.
If Reyat breaches any of the conditions, he can be sent back to prison, Storey said.
A parole officer could also recommend that Reyat be released early from the halfway house.
Families of the victims said they were shocked to hear the news about his release.
"It's upsetting. It's always been upsetting.… It's a saga that never ends," said Renee Saklikar, a Vancouver-based poet whose aunt and uncle were killed in the bombing, leaving behind an orphaned boy.
Saklikar said she was disappointed to have heard the news about Reyat through the media, instead of directly from the parole board.
"It's an unending, hurtful wound. You don't want to live your life through that kind of pain," she said. "This really challenges your belief in a just society. Days like today are hard."
She added her thoughts go out to people like her nephew who will never see his parents again.
"My thoughts are always primarily with the families, and my heart goes out to all of them. This person gets to be with his family, and we'll never get to be with our lost ones."
Families of the victims said they were shocked to hear the news about his release.
"It's upsetting. It's always been upsetting.… It's a saga that never ends," said Renee Saklikar, a Vancouver-based poet whose aunt and uncle were killed in the bombing, leaving behind an orphaned boy.
Saklikar said she was disappointed to have heard the news about Reyat through the media, instead of directly from the parole board.
"It's an unending, hurtful wound. You don't want to live your life through that kind of pain," she said. "This really challenges your belief in a just society. Days like today are hard."
She added her thoughts go out to people like her nephew who will never see his parents again.
"My thoughts are always primarily with the families, and my heart goes out to all of them. This person gets to be with his family, and we'll never get to be with our lost ones."
