An Italian court said on Wednesday it had blocked the extradition of a Moroccan migrant suspected of supplying weapons for attack on the Bardo Museum in Tunisia earlier this year and ordered his release.
The Milan Appeals Court said the fact that the 22-year-old risked being sentenced to the death in Tunisia was "an impediment" to his transfer there and ordered he be freed from jail.
Touil, who is an illegal immigrant to Italy could however face deportation from Italy on his release from Milan's Opera prison.
Prosecutors have asked for the judicial probe of Touil to be shelved, reportedly due to a lack of evidence against him.
He was arrested on 19 May near his family's apartment outside Milan by Italian counter-terrorism police on an international warrant issued by Tunisia.
He arrived in southern Italy in mid-February aboard a migrant boat and has never left the country since, according to Touil and his family, who deny his involvement in the Bardo attack.
Touil's arrest fuelled fears that Islamist terrorists could hide among the hundreds of thousands of migrants and asylum seekers who have crossed the Mediterranean by boat to enter Europe in the past two years.
But it also raised nearly immediate suspicions that his was a case of mistaken identity. It emerged that the people smuggler aboard whose boat Touil crossed to Sicily in February had taken his mobile phone and in March used Touil's SIM card in Tunisia on dates that Touil was known to have been in Italy.
Twenty-one foreign tourists, a policemen, and two out of three gunmen were killed during the 18 March attack on the Bardo museum in Tunis, which was claimed by the Islamic State militant group.
Tunisia's authorities said the Bardo assault was launched by the Okba Ibn Nafaa Brigade, a cell of 23 militants with overlapping allegiances to several jihadist groups.
