Trabelsi, 56, who faced charges of organised money laundering and has paid 100,000 euros (USD 112,000) in bail, must remain in France and report regularly to a local police station, they added.
It was the second time that an appeals court in Aix-en-Provence, southeastern France, had ordered his release from a jail in Marseille.
Tunisia's extradition request refers to a series of convictions in absentia and three 10-year sentences handed down between February 2017 and June 2018 for financial crimes.
Trabelsi, whose holdings included hotels and an airline, has denied the allegations against him, saying he accumulated his wealth legally.
A leaked US diplomatic cable in 2008 described Trabelsi and his family as a "quasi-mafia" involved in a series of suspect businesses and deals.
Trabelsi and his family flew in a private jet to Montreal to seek Canadian political asylum, a request that was denied twice.
He disappeared in June 2016 just days before he was to be expelled from Canada, and was arrested in southern France in March 2019.
France's hearing of the Tunisian extradition request is expected to be held in June.
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