He said after a long deliberation by the officials concerned it has been decided to follow the review board's decision.
Official sources said that Saeed's release would invite strong criticism from India and the US.
"How will the PML-N government handle the foreign pressure to again detain Saeed is to be seen," they said.
Punjab Assistant Advocate General Sattar Sahil said the government law officer had presented "some important evidence" to justify Saeed's detention but all three members of the board unanimously rejected it and ordered his release.
On January 31, Saeed and his four aides - Abdullah Ubaid, Malik Zafar Iqbal, Abdul Rehman Abid and Qazi Kashif Hussain - were detained by the Punjab government for 90 days under Anti-Terrorism Act 1997 and the Fourth Schedule of Anti- Terrorism Act 1997. However, the last two extensions were made on the 'public safety law'.
The board refused to give further extension to the detention of Saeed's aides. They were set free last month.