One of China's most wanted men will be set free in Vancouver until a hearing later this month that could end with his deportation, the Immigration and Refugee Board has ruled.

Lai Changxing was ordered released from custody Tuesday, after board members ruled that he is not a flight risk. The businessman, nicknamed "Mr. Big," is scheduled for a hearing on July 21 that could decide whether he will be deported.

For 12 years, Lai has fought his return to China to face allegations he masterminded a network that smuggled as much as $10 billion of goods with the protection of corrupt government officials who he plied with cash, prostitutes and booze.

Lai was arrested by border officers late last week as the possibility of his removal drew near, but the Federal Court of Canada granted a temporary stay on Monday blocking his immediate deportation. He is being held at North Fraser Pretrial Centre in Port Coquitlam pending his release.

According to the conditions of his release, Lai must report to the Canada Border Service Agency every Thursday and advise border officials of any change in address at least 24 hours in advance.

The government will also supply a list of individuals that it considers to be criminals, with whom Lai can have no contact.

Canada and China do not have an extradition treaty. While China has given Canadian authorities assurances Lai will not face execution and last year said it would offer prison access to Lai by Canadian officials, Lai's lawyer maintains those assurances are not enough.

With files from The Canadian Press