An Israeli court decided Thursday to release diamond magnate Beny Steinmetz and a political adviser who had been working for Austria's chancellor following their arrest as part of a money laundering probe, police said.

Steinmetz and Tal Silberstein are to be released on Friday on condition of various restrictions which were not made public, according to police. The two men were detained on Monday, with Israeli police saying they were held for questioning on suspicions including money laundering, fraud, forgery, obstruction of justice and bribery.

It was the second time Steinmetz had been detained by Israeli authorities since December, when he was placed under house arrest as part of a corruption probe involving mining deals in the African nation of Guinea.

Besides the Guinea investigation, the Israeli-French billionaire was charged in Romania last year with forming an organised criminal group and money laundering in a property-related case that cost the state $145 million.