OTTAWA - A Federal Court judge has ruled that suspected terrorist Mohamed Harkat can remain free despite a "serious breach" of his bail conditions.

In a decision released Monday, Justice Eleanor Dawson rejected a request by the Canada Border Services Agency to put Harkat back in jail.

She also turned down the Crown's request that Harkat forfeit more than $100,000 in cash and bonds, saying the seizure would be unfair in light of the "unique and extraordinary circumstances" that led to his re-arrest Jan. 29.

Dawson said Harkat can remain free as long as he meets the conditions of his release set down in prior court proceedings.

She refused his request to ease the strict terms and conditions of his release order so he could stay at home unsupervised.

Harkat, an Algerian refugee living in Ottawa, has been detained on a security certificate since 2002.

The order stipulates that Harkat must be in the company of either his wife, Sophie, or his mother-in-law 24 hours a day.

He was arrested after authorities learned his mother-in-law was no longer sleeping in the same house.