"He is currently in the premises of the Panevėžys bureau of the Special Investigation Service, he will be released as soon as the documents are sorted," Balčiūnas' attorney Gintaras Černiauskas told BNS.
The court ruling to cancel the detention is final and is not subject to appeals.
Balčiūnas is suspected of fraud, jobbery, document forgery or possession of a forged document, and bribery.
Last week, another Panevėžys court issued a 20-day arrest warrant for Balčiūnas, while prosecutors wanted him in custody for two months.
Other detainees, adviser to Panevėžys mayor Darius Šimėnas and Romantic Hotel owner Dalia Kuklierienė, were put in custody for a month.
Panevėžys prosecutors, in cooperation with officers of the Special Investigation Service, are carrying out an investigation into jobbery, fraud, and document forgery as part of the probe into legitimacy of spending municipal funds on reconstruction of Romantic Hotel.
The prosecutors suspect there may have been a plan before the 2011 European Basketball Championship to unlawfully reconstruct the hotel owned by Via Unica company for the municipality's money.
