Raymond Allen Davis has been in jail since Jan. 27 on suspicion of murder.
Officials said Davis was charged with murder Wednesday but he was let go after the families of the two Pakistanis he killed pardoned him in exchange for compensation.
A lawyer for the families said the United States paid $2.34 million in "blood money" to secure the man's release.
Davis said he killed the two Pakistanis in self-defense.
The killings and detention of Davis had strained ties between /*Pakistan*/ and the /*United States*/ and added to anti-America sentiment.
The Associated Press contributed to this report.
