UPDATED 1525 GMT: The pro-Ahmadinejad Islamic Republic News Agency, on its English-language site, is now reporting the Tehran Prosecutor's announcement that Sarah Shourd will be released on $500,000 bail, even though "the documents about three American spies indicated that they were not on an excursion in Iran".
Interestingly, IRNA's Persian-language site still has no reference to the development.
UPDATED 1050 GMT: Lawyer Masoud Shafii says he met today for three hours with Sarah Shourd, Shane Bauer, and Josh Fattal at Evin Prison, and he is hopeful Shourd will leave the facility in the next two or three days.
Shafii said the Swiss Embassy, which represents US interests in Iran, is making arrangements for the $500,000 bail for Shourd.
UPDATED 12 September 0745 GMT: Iranian state television is quoting Tehran Prosecutor General Abbas Jafari Doulatabadi that Iran is ready to free Sarah Shourd on bail of $500,000.
Doulatabadi, in a press conference, said, "[Shourd] is not barred from leaving Iran" after bail is posted, but "the other two detained American hikers will remain in jail".
This points to a compromise between the judiciary and the President. Ahmadinejad still gets his gesture, just before his trip to New York and the United Nations, of some leniency --- although it should be noted that Shourd's fellow detainees, Shane Bauer and Josh Fattal, remain behind bars --- while head of judiciary Sadegh Larijani and Speaker of Parliament Ali Larijani block the President's plans for a grand ceremony and the "freeing" of Shourd.
Iran Urgent Analysis: Judiciary Overrules Ahmadinejad — Release of US Detainee Shourd Delayed
Iranian Labor News Agency has a full report of the press conference by Doulatabadi. The pro-Ahmadinejad Islamic Republic News Agency is not yet posting the news. Fars prefers to focus on the headline, "Doulatabadi: We Provide Evidence about the Spying of the Three Americans".
UPDATED 1510 GMT: Masoud Shafii, the lawyer for the US detainees Sarah Shourd, Shane Bauer, and Josh Fattal, has said he is upset at the delay in Shourd's release, declaring that her family's emotions are "being abused".
Shafii said, "Put yourself in her mother's shoes. It's been more than year and she has no idea why her daughter was arrested and what will happen to her."
The lawyer continued, "There's obviously a difference of opinion as to what to do within the government. Legally the prosecutor has the final say in this matter, but I ask you, has anything about their arrests and treatment been legal so far?"
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One significant development this morning in the case of Sarah Shourd, one of three Americans detained in July 2009 while walking along the Iran-Iraq border....
The Iranian Labor News Agency carries a follow-up interview with Tehran Prosecutor General Abbas Jafari Doulatabadi, who unveiled the "surprise" last night that Shourd would not be released today ina ceremony scheduled for a Presidential Palace in Tehran. Doulatabadi strongly re-asserts the judiciary's line, which is a slap-down of the Foreign Ministry and President Ahmadinejad. He reiterates that all three detainees --- Shourd, Shane Bauer, and Josh Fattal --- are still under judicial investigation and that none will be freed until the process is brought to an end.
Doulatabadi also gives a specific negative signal in the case of Shourd, who has health problems, when he says that sickness is not considered to be an alleviating factor and that news of possible freedom will be reliably relayed solely by judicial authorities. This is a reponse to those in the Foreign Ministry and Government who are saying that there is only a brief delay in the freeing of Shourd.
Meanwhile, Ahmadinejad's office, dazed by the judiciary's attack, is using the Islamic Republic News Agency as its media outlet. Last night, it could only offer a cursory statement that the release was delayed. This morning, its line --- somewhat ludicrous, given the initial plans for a high-profile ceremony at the Presidential palace in Saad Abad --- is that the freeing of Shourd has been postponed because Government offices are closed today.