The decision by Egypt's Court of Cassation that lasted only a few minutes. However, Canadian-Egyptian Mohammed Fahmy, Australian journalist Peter Greste and Egyptian Baher Mohammed, who have been held their arrest December 2013, were not granted bail.
The three journalists did not attend the brief hearing that began around 9 am local time (1230 IST) in Cairo. Reporters gathered to report on the hearing were not allowed in for those arguments, but later entered the court.
Defence lawyer Negad Al-Borai told journalists after the hearing that he hoped for a "happy end" to the case.
Authorities accused Qatar-based Al-Jazeera of acting as a mouthpiece for the Brotherhood. The station denied the accusations and said the journalists were doing their job.
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At trial, prosecutors offered no evidence backing accusations the three falsified footage to foment unrest. Instead, they showed edited news reports by the journalists, including Islamist protests and interviews with politicians. Other footage submitted as evidence had nothing to do with the case, including a report on a veterinary hospital and Greste's past reports out of Africa.
A recent thaw in relations between Qatar and Egypt has seen Al-Jazeera shut down its Egyptian affiliate, which dedicated much of its coverage to Islamist protests since Morsi's overthrow. El-Sissi said last month a presidential pardon for the three was being "examined" and would be granted only if it was "appropriate for Egyptian national security.