The release of German-Canadian former arms lobbyist Karlheinz Schreiber from a Munich prison on bail has been confirmed by a German court, according to a media report.

Munich state court affirmed a lower court decision that Schreiber should be released, the German dapd news agency said.

Schreiber is to be released Monday, CBC's Harvey Cashore reported. As part of Schreiber's bail conditions, he must live at his mother-in-law's house. He won't be allowed to leave the house except for trips to the local police station — where he is required to report every morning. 

Schreiber, 78, was originally ordered released on Tuesday after he had a heart attack, but the order was quickly appealed.

He was at the centre of a widespread bribery and influence-peddling scandal in Germany. His secretive financial relationship with former prime minister Brian Mulroney also became the key element in a public inquiry in Canada.

Mulroney, who admitted taking $225,000 in cash from Schreiber, said he was paid for work he did abroad after stepping down as prime minister.

But Schreiber maintained the payments were made in 1993 and 1994 to lobby the Canadian government for a light-armoured vehicle plant.

Following a 10-year legal battle, Schreiber was extradited to Germany in 2009 to face tax evasion, fraud and bribery charges related to income he allegedly received from the sale of German-made armoured vehicles to Saudi Arabia in 1991.

The extradition process was so lengthy, in part, because the federal government allowed him to stay in Canada to testify at the inquiry about his dealings with Mulroney.

After his return to Germany, Schreiber was sentenced in 2010 to eight years in prison.