John Downey, who was arrested in connection with a double murder in Northern Ireland in 1972 has been granted bail by a judge in Dublin.
He was arrested in County Donegal on Monday on a European Arrest Warrant after Northern Ireland authorities said they had sufficient evidence to charge him.
In the attack, Lance Corporal Alfred Johnston, 32, and Private James Eames, 33, were killed in a car bomb in Enniskillen.
The 66-year old former IRA member had also previously been accused of the murder of four soldiers in the 1982 Hyde Park bombing, but the 2013 trial collapsed when he produced a letter from Tony Blair’s government stating he was not actively wanted by the authorities.
Mr Downey has always denied involvement in the Hyde Park attack.
Explaining the decision to grant bail on Thursday morning, the judge said Mr Downey had abided by all bail conditions when they previously applied to him in England.
Mr Downey was arrested at his home in Creeslough, County Donegal, by Irish police on suspicion of the murders and of aiding and abetting an explosion.
In a statement on Tuesday, Sinn Féin MLA for North Belfast, Gerry Kelly said Mr Downey's arrest and remand was “an act of gross bad faith by the British Government which again gives lie to claims by British Prime Minister Theresa May over legacy investigations”.
He added: “John Downey has been a supporter of the peace process over many years and to pursue his arrest and extradition now is vindictive and bad faith.”
DUP leader Arlene Foster, who is an MLA for Fermanagh and South Tyrone, accused Sinn Féin of a “hysterical response” in relation to Mr Downey's arrest.
Agencies contributed to this report
