"The king, with the advice of the pardons board of the federal territories of Kuala Lumpur, Labuan and Putrajaya, has allowed a full pardon and given an immediate release for ..."
Anwar still needs to be elected as a member of parliament, and it was assumed that his wife would stand down from the seat she won last week, says Weiss.
Once discussions are finalised with the Pardons Board, Anwar will be released from Cheras Rehabilitation Hospital, says daughter Nurul Izzah Anwar. Anwar became Mahathir's heir apparent, but they fell out during the 1998 Asian financial crisis and Anwar was sacked.
Mahathir was once Najib's mentor but he left the former ruling party over the 1MDB affair and joined the opposition.
In 2015, Anwar was imprisoned for a second time, again on sodomy charges that he said were false.
Images at the time of a goateed, bespectacled Anwar in court with a black eye and bruises brought condemnation of Mahathir from around the world.
"If there is no case against him, we don't go for detention without trial", Dr Mahathir was quoted as saying in the report. When Anwar made a push to increase his power, Mahathir had him jailed on politically-motivated sodomy charges.
Malaysian politician Anwar Ibrahim kisses his wife during a news conference in Kuala Lumpur, Malaysia May 16, 2018.
In the 1990s, Anwar served as deputy prime minister under Mahathir.
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Asked to specify projects in the country which he had concerns about, Dr Mahathir said there were pieces of land being sold to Chinese companies to build large cities.
The four parties that make up Pakatan Harapan, including Anwar's Parti Keadilan Rakyat (People's Justice Party), had agreed before the election that Mahathir will be premier and Wan Azizah will be deputy premier.
US investigators say Najib's associates stole $4.5 billion from the fund, some of which landed in Najib's bank account. "Now we need to see him become prime minister".
Officials in Anwar's political party said he was headed to an audience with Malaysia's king and was expected to address the public in the afternoon followed by a political rally in the evening.
Mahathir vowed on Monday to investigate any faults that may have been committed by Najib's government and said all ministries had been instructed not to destroy any documents.
Mahathir and Anwar are a political odd couple who have "hated each other politically" for two decades, James Chin, Director of the Asia Institute at the University of Tasmania, told CNN ahead of the election last week.
Wearing a white shirt printed with a photograph of Anwar and the words "March 2 Freedom", he said he nevertheless believed Anwar and Mahathir could work together and that the alliance's prospects were good. "But Mahathir may be reluctant to hand over to his former nemesis, and if he drags his feet other scenarios could come into play", said Peter Mumford of the Eurasia Group in a research note.
Mahathir, 92, said he thought that "in a short while" the government could have a case against his predecessor, Najib Razak, who has been dogged by a multi-billion-dollar scandal at state fund 1Malaysia Development Berhad (1MDB).