Nancy Chen, 34, who is believed to be a practitioner of Falun Gong, was arrested while visiting relatives.
A spokesman for the Australian embassy said Ms Chen has been released from custody and is now on her way back to Sydney.
Ms Chen disappeared last week while visiting her parents in the city of Chengdu in south-west province of Sichuan.
The embassy sent two consular officials to Chengdu yesterday after confirmation she had been detained by police.
Chinese officials have made no public statement about her arrest.
http://www.abc.net.au/news/australia/2003/01/item20030130190324_1.htm
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