Foreign Minister Bob Carr believes Australian lawyer Melinda Taylor will be released soon if her employer apologises to Libya.
Senator Carr is in Libya to press authorities for the release of Ms Taylor, who has been held in detention since June 7.
He says Ms Taylor's release could be imminent.
"I believe after listening to them and after speaking to the prime minister and the deputy foreign minister that we're pretty close to being able to say that the judicial investigation is complete," he told ABC Radio on Tuesday.
"That would open the way to a release of the detainees, which is what we Australians want for so much."
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Ms Taylor, an International Criminal Court (ICC) lawyer, has been held along with three colleagues since a meeting with the son of deposed Libyan dictator Muammar Gaddafi, Seif al-Islam.
Senator Carr said the issue could be resolved if the ICC issued a statement that addressed the concerns of Libyan authorities and extended an apology for "inadequate consultation on protocol and procedures".
