Elshamy, who works for the main Arabic channel of the Qatar-based network, was arrested on August 14 when police dispersed supporters of ousted president Mohamed Morsi in Cairo, sparking clashes that left hundreds killed.
The journalist has been on hunger strike since January 21, according to his family.
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Elshamy's family told AFP in May that he had shed 40 kilogrammes since he began the hunger strike.
Twelve other defendants were also ordered released by the prosecutor on Monday over their health conditions.
Friends and relatives - including his mother, his wife and one of his brothers - waiting for Elshamy outside the police station chanted his name and clapped their hands in celebration of his release.
Al-Jazeera expressed its "relief" in a statement issued swiftly after Elshamy's release.
"Abdullah has been through a terrible ordeal for over ten months. He will want to spend time with his family and recuperate", the network said, adding that it "looked forward to seeing him back in action, doing the vital job of journalism that he so clearly loves."
The military-installed authorities have been incensed by Al-Jazeera's coverage of their crackdown on Morsi supporters, in which more than 1,400 people have been killed in street clashes and at least 15,000 jailed.
Three other Al-Jazeera journalists with the network's English-language channel are held in Egypt and on trial for spreading false news and supporting Morsi's Muslim Brotherhood.
The trial of Australian Peter Greste, Egyptian-Canadian Mohamed Fadel Fahmy, producer Baher Mohamed and 17 other co-defendants has sparked an international outcry.
On Monday, the court set June 23 as the date for its verdict in the case.
Egyptian prosecutors have demanded the maximum penalty of 15 to 25 years in jail for all defendants.
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