The first U.S. government-declared “enemy combatant” in the war on terror will soon be released from a military prison in South Carolina under an agreement that will allow him to fly home to Saudi Arabia as a free man, administration officials tell NEWSWEEK.

The agreement to free Yaser Esam Hamdi represents a stunning reversal for the Bush administration, which argued for more than two years that the former Taliban fighter was potentially so dangerous that he had to be detained indefinitely in solitary confinement with no access to counsel and no right to trial.

But in a landmark ruling last June, the U.S. Supreme Court ordered that Hamdi, an American citizen, be allowed to consult with his lawyer and challenge the basis for his imprisonment. This pushed the case back into federal court and forced the Justice Department to mount a hasty retreat.