The Prominent Ethiopian opposition leader Merera Gudina has been released from prison after more than a year in custody.

The move on Wednesday came two weeks after Prime Minister Desalegn Hailemariam had announced that the jailed "politicians" would have their cases cancelled in order to improve the national harmony and widen the democratic space".

The government has so far released more than 500 people arrested in the wake of widespread deadly protests that erupted in Ethiopia's central Oromia Province in November 2015.

Merera, chairman of the opposition Oromo Federalist Congress (OFC), was released along with more than 100 others from the Kilinto Federal Prison on the outskirts of the capital, Addis Ababa.

Some 360 others were also reportedly freed in the south of the country.

Speaking to reporters following his release, Merera said it felt "good" to be out of prison and called on the government to hold "honest disscutions with political organisations "to create a democratic Ethiopia that accommodates everyone equally".

More than 1,000 supporters gathered in Merera's hometown of Burayu to welcome him.