The 64-year-old, who led Taiwan from 2000 to 2008, will be released from a prison hospital this afternoon due to his "medical condition", said deputy justice minister Chen Ming-tang, but will be subject to monthly health checks.
The former Democratic Progressive Party (DPP) leader, who ended 50 years of Kuomintang rule when he came to power, was sentenced to life in prison in 2009 for money-laundering and bribery -- a term reduced to 20 years after appeals.
He attempted suicide in June, trying to hang himself with a towel in a bathroom of the prison hospital.
"The (independent) medical team think Chen needs to leave his present location where his medical treatment is not helpful to his condition," said justice minister Chen after a parole board meeting this morning.
"So a decision has now been made to parole him for a month."
The ex-president's freedom after that would be contingent on his medical condition, the justice minister added.
More than 200 supporters gathered outside the prison in the central city of Taichung where Chen was serving his sentence, waiting to greet him on his release.
One held a placard which read: "God Bless Taiwan -- Go A-bian!" referring to Chen's nickname.
Some supporters had been waiting outside the prison since Friday.
The medical report on Chen was completed Friday but its delivery to the island's justice ministry was held up in traffic, leading some supporters to criticise the government for delaying his release.
But justice minister Chen said: "No politics was involved in this matter," as he delivered the parole report Monday.
Relations with China have warmed under current Kuomintang president Ma Ying-jeou, while the DPP is traditionally more sceptical over closer ties with Beijing.
China claims sovereignty over Taiwan even though the island has ruled itself since their split in 1949 at the end of a civil war. Taiwan has never formally proclaimed independence.
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