An appeals court reportedly overturned her conviction.
"We are very very happy about this -- and we're going to her now," Ibrahim's lawyer, Elshareef Ali, told the BBC.
Ibrahim was convicted of apostasy while she was eight months pregnant, and put in prison with her 20-month-old son. An Egyptian court ruled she would die by hanging for renouncing the Muslim faith of her father, who left the family when Ibrahim was six years old. She was raised a Christian by her mother. The court also convicted Ibrahim of adultery for marrying a non-Muslim man, and sentenced her to be flogged.
While imprisoned, she gave birth to a baby girl on May 26.
Her jailing and death sentence sparked international outrage.
A Sudanese official told the BBC in late May that Ibrahim would soon be set free.
Nearly a month later, her lawyer said, "They have released her ... she's on her way to home."