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Causely was originally released in 2020 after spending more than 30 years behind bars.
However, he was returned to prison in 2021 for breaching his licence conditions.
Last month, the Parole Board ruled he was suitable to be released from prison and the Ministry of Justice confirmed this had taken place on Wednesday.
A spokeswoman for the Ministry of Justice said: “We know this will be an incredibly difficult time for Carole Packman’s family, but Russell Causley will be under close supervision for the rest of his life and can be recalled to prison if he breaches the strict conditions of his release.
“Our parole reforms will stand up for the rights of victims in cases like this, making public safety the overriding factor in parole decisions and adding a ministerial veto on release of the most serious offenders.”
Causley made history when he became the subject of the first public parole review in the UK.
At the hearing Causley, then 79, admitted changing his stories “consistently”, but denied murdering Ms Packman.
Causley added: “I don’t think I’m a wicked person…I hate it when you say I’m a cold-blooded killer.”
The chairman of the parole panel told the hearing there were allegations that Causley had told other prisoners how he had murdered Ms Packman.
Causley denied the conversations, claiming none of them had taken place.
In response, the parole panel chairman told Causley: “Your version of events has varied frequently over time.
“Your wife’s body has never been found. The precise circumstances of the murder are not clear.”
Causley was released on Wednesday.
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