BREAKING NEWS: Sarah Shourd, Iran Prisoner, RELEASED! (PHOTOS)

Iran's English language state television has reported that American Sarah Shourd has been released after more than a year in prison.

A senior Iranian prosecutor said Sunday that authorities will release a jailed American woman on $500,000 bail because of health problems, another sudden about-face by Iran in a case that has added to tension with the United States.

The news came during a weekend of start-and-stop announcements about the release of Sarah Shourd, who was detained with two friends, Shane Bauer and Josh Fattal, along the Iran-Iraq border on July 31, 2009, and accused of spying.