Katherine Jane Wilson, said to be aged around 60, is "safe and well", Australian Foreign Minister Julie Bishop said, without disclosing when she was released or who was behind her abduction.
Unidentified masked gunmen kidnapped Wilson from Jalalabad, near the border with Pakistan, in late April when she was visiting the city for a women's embroidery project.
"I confirm that Kerry Jane Wilson, who was abducted in Afghanistan in April this year, has been released, and she is now safe and well," Bishop said in a statement, without saying whether she is still in Afghanistan.
Afghanistan's main intelligence agency, the National Directorate of Security, said Wilson was released in a "special operation", without offering details.
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"As a result of our efforts, she has been safely released. Several suspects have been detained and our investigation is still going on," NDS said in a brief statement.
Wilson, a well-known aid worker in the country, ran a non-governmental organisation known as Zardozi, which promotes the work of Afghan artisans -- particularly women.
Foreign tourists, including British, American and German nationals, came under Taliban fire earlier this month in a volatile district of Herat, leaving some of them wounded. They were safely evacuated to Kabul and were flown out of the country.
Aid workers in particular have increasingly been casualties of a surge in militant violence in recent years.
Judith D'Souza, a 40-year-old Indian employee of the Aga Khan Foundation, a prominent NGO that has long worked in Afghanistan, was abducted near her residence in the heart of Kabul on June 9. She was rescued in July.
The United States in May warned its citizens in Afghanistan of a "very high" kidnapping risk after an American narrowly escaped abduction in the heart of Kabul.
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