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After serving 20 years in prison for the deaths of her four children, 55-year-old Australian Kathleen Folbigg has been granted a pardon and is now free, according to the decision of Michael Daley, the attorney general of New South Wales.

Folbigg was given a 25-year sentence after being found guilty in 2003 of the death of three of her children and the manslaughter of another. She has always maintained innocence.

Thomas Bathurst, a former state chief justice, undertook a probe into Folbigg's convictions and issued a brief report, which Daley released on Monday.

Having come to "a firm view that there was reasonable doubt as to the guilt of Ms Folbigg for each of the offences for which she was originally tried," Bathurst informed the attorney general.

Daley then suggested that Folbigg be unconditionally pardoned and promptly released to the state's governor as a result.

Shortly after 11 am, she was subsequently freed from the Clarence Correctional Centre, close to Grafton.

Tracy Chapman, Folbigg's closest friend, thanked everyone who had helped with her release and had helped her cope with the loss of her children.

"The past 20 years have been horrific for Kathleen, not least for the pain and suffering she has had to endure following the loss of her four children," she said.

Although Folbigg's convictions are not overturned by the pardon, her supporters were already demanding "very, very significant" restitution for her on Monday.

Within a few weeks, Bathurst is anticipated to submit his final report, at which point the convictions could be overturned at the state's court of criminal appeal.

Daley said it was a horrible case, but he would not express an opinion on Folbigg's innocence.

"We’ve got four little bubbas who are dead. We have a husband and wife who lost each other, a woman who spent 20 years in jail and a family that never had a chance," he said, adding that one would "not be human" if not feeling anything about it.

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Folbigg would be "so happy", according to friend and supporter Peter Yates, who also pointed out that she had been imprisoned for 20 years and that no one could "just wave a wand" and make everything right.

"I think people in NSW would expect that compensation to be very, very significant," he said.

Three of the youngsters may have passed away from natural causes, according to Bathurst. There was a good chance the deaths of Sarah and Laura Folbigg's daughters were caused by the genetic mutation CALM2-G114R.

The counsel helping with the investigation, Sophie Callan SC, had previously stated that there was "persuasive expert evidence" that one of Folbigg's kids, Patrick, may have died from an underlying neurogenetic condition like epilepsy.

"The coincidence and tendency evidence which was central to the (2003) Crown case falls away" in regards to the death of a fourth kid, Caleb, according to Bathurst.

The idea that Ms. Folbigg was anything other than a devoted mother to her kids was one that Bathurst "could not accept."

He claimed that the journal entries that led to her conviction were actually the writings of a distraught and maybe depressed mother who blamed herself for each child's demise rather than admissions that she had killed or hurt them.

In order to prevent another instance like this one, Daley stated that he was willing to consider any legal adjustments.

Sue Higginson, the justice spokesperson for the NSW Greens, expressed joy over Folbigg's release and claimed it had taken years of "influence and agitation" to make it happen.

"She’s walking, she’s outside, she’s in the sunshine … justice has been done," she said.

Not only that, but Higginson also indicated that Folbigg would seek compensation for the "20 years of her life that has been lost".

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