On July 19, "the government of the Maldives has permanently moved president Nasheed to house arrest for the balance of his 13-year term in prison," Nasheed's counsel Jared Genser told reporters.
He added that Nasheed had accepted the terms of the transfer and will abide by all conditions attached to the decision.
Yesterday, the Maldivian Prosecutor General Muthaz Muhsin said he would appeal Nasheed's conviction, citing rights violations and irregularities in his terror trial, whose fairness has been questioned by international governments, including India and the US, and rights organisations.
"This is not just a u-turn by the government, it is bizarre," Genser said, adding that he had been denied a visa to enter Maldives to visit his client Nasheed which forced him to travel to Colombo.
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The Prosecutor General's decision comes amidst rumours that President Abdulla Yameen will pardon the opposition leader ahead of July 26, the day Maldives marks 50 years of independence from the British, Minivan News reported.
Last month, Nasheed had appealed to President Abdulla Yameen to reduce his sentence under Maldives' anti-terrorism laws.
Immediately after the sentencing, Nasheed has been incarcerated in a prison on a remote island.
His conviction drew widespread criticism over the apparent lack of due process in the 19-day trial.
The former president was ousted in February, 2011 by a mutiny of security forces. He said he was forced to resign as a result of a coup.