"We have learned that the Supreme Council of National Security has discussed this matter and house arrest will be lifted soon; tomorrow", IRNA said, citing a yet not published statement from the SCNS.

But informed sources said the SCNS decided to "review" the case of the 80 years-old Grand Ayatollah, after it received a letter from his sons, assuring that the dissident cleric would no more intervene in Iranian politics.

"We must wait for the announcement and the implementation of the decision", the French news agency AFP quoted Hojjatoleslal Ahmad Montazeri as having hoped.

Grand Ayatollah Montazeri, once considered as heir to Grand ayatollah Roohollah Khomeini, the leader of the Islamic revolution of 1979, but was dismissed months before the death of Ayatollah Khomeini.

But despite being confined to his residence and harassed, he nevertheless continued his criticism of the regime’s shortcomings, urging officials to consider amending the Constitution that was formulated in great part according to his vision of an Islamic Republic.

In the past weeks, there had been increasing pressures by the reformists, National-religious groups and a great number of influential personalities, including ministers and officers in the armed forces emulating Mr. Montazeri, on Mr. Khameneh'i to order his release.

Around 100 MPs from the reform camp -- which has repeatedly called for the release of Montazeri -- wrote to Khatami on January 16 to express concern over "the seriousness of his health condition".

The five years Ayatollah Montazeri was held in confinement made him the most popular personalities of Iran, to the degree that some conservatives have warned that their rivals could use his death as major political capital.