Hichilema's arrest had heightened tension in the southern African nation after last year's disputed elections, with stakeholders calling for dialogue to ease the tension.
Last week, Commonwealth Secretary-General Patricia Scott visited Zambia and met both President Edgar Lungu and the opposition leader where she facilitated a process of dialogue between the two political foes.
Former Nigerian President Olusegun Obasanjo also visited the southern African nation and held talks with Lungu and the opposition leader.
In June, church leaders from the influential Catholic Church held talks with Lungu and called for the release of the opposition leader in order to ease tension in the country. The church leaders also visited the opposition leader in prison.
Hichilema, 55, is a wealthy businessman who narrowly lost to Lungu in last year's elections but has refused to concede defeat, claiming the vote was stolen from him.
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