Israel released its most wanted Jewish extremist, Meir Ettinger, after being held for some 10 months in administrative detention without trial.
Prison Service spokesman Assaf Librati said that Ettinger, 24, was released from jail on Wednesday morning and placed him under house arrest.
He said that the convict was taken into custody in August for being involved in criminal nationalist activity.
The arrest followed a deadly arson attack on July 31 that killed a Palestinian baby.
Israeli-Palestinian tensions have soared since the attack, in which extremists threw a fire bomb into the home of a Palestinian family in the West Bank village of Duma, killing 18-month old Ali Dawabshe.
The toddler’s parents later also died of fatal burns, while his four-year old brother was wounded.
Two Jewish extremists were indicted for the arson attack.
Amiram Ben Uliel, a 21-year old Jerusalem native, who was formally charged with murder committed with racist motives and a 17-year old, was charged with aiding murder.
Ettinger, who tops the Shin Bet internal security organisation’s list of most wanted Jewish extremists, had been arrested multiple times in the past.
He has also been served restraining orders that ban him from entering the West Bank.
The grandson of late Jewish extremist Rabbi Meir Kahane, he purportedly publicly advocated attacking Palestinians and vandalising sensitive Muslim and Christian holy sites.
Administrative detention allows Israel to detain suspects without trial for renewable periods of six months.
Israel usually uses the method when it has no concrete evidence of a past crime for which the suspect can be indicted.
The method is often used against Palestinians, but last year Israel promised a crackdown against Jewish extremists.