Iran frees jailed US hiker 'spies' Bauer and Fattal

The pair were arrested in 2009 after crossing into Iran from Iraq, where they said they were hiking, and were sentenced in September this year.

Reports said Iran's judiciary had set their bail at five billion rials ($400,000).

Bauer and Fattal's lawyer, Masoud Shafii, told reporters earlier: "I have got necessary signatures from judiciary officials for their release on bail. Hopefully the two will be freed today.

"There is no obstacle to their freedom now. It's only a matter of time before they are out of jail."

He said there had been "a minor problem" with the bail money but that he hoped the situation would soon be resolved. He told AFP news agency that the money had been provided by the state of Oman.

State media had quoted Mr Shafii as saying the handover would take place at 1500 local time (1030 GMT).

Swiss embassy vehicles were seen arriving at Evin prison, where the men had been held, on Wednesday morning, and the judiciary then confirmed their release had been approved.

The release process is believed to be under way, after which the pair will be flown to a third country, expected to be Oman.

US officials said they would release a statement on the developments once the men had left Iran.

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