The 36-year-old was ushered out of Kerobokan prison into a green minibus, as crowds of journalists waited outside the jail and scores of police stood guard, said an AFP journalist at the scene.
"Corby will be escorted in the minibus to the prosecutors' office and then the corrections office," local police official Agus Nugroho said, explaining the final procedural steps that Corby must take before her release.
Corby, whose case has attracted huge fascination in Australia, was arrested in 2004 trying to smuggle marijuana into Bali in her surfing gear.
She was jailed in 2005 for 20 years but received several remissions due to good behaviour and a five-year sentence cut after an appeal for clemency to the president. She has always maintained her innocence.