The 39-year-old was suspected of preparing acts of terrorism.
Public prosecutor Ronnie Jacobsson chose not to request the man be remanded in custody.
However, suspicions about the man remain.
On Friday two other men, ages 42 and 37, were remanded in custody for the same crime. According to prosecutor, the men have sent money to terrorist groups in Somalia.
All three suspects deny the charges.
Three men with Somali background arrested in Norway on Thursday have also undergone questioning on suspicions of terror related offences.
Two of the men are expected to be released shortly, according to information from Norway’s security police reported by Norwegian news agency NTB.
Detention hearings for the third man arrested in Norway are expected to continue throughout the day.
Suspicions of financing terrorism remain against all three men arrested in Norway, according to NTB.