CAMBODIAN opposition MP Cheam Channy was freed from prison today, a day after receiving a royal pardon amid an apparent easing of tensions between Prime Minister Hun Sen and his political rivals. About 200 cheering supporters blocked Cheam Channy's car as it left Phnom Penh's military court compound after a brief religious ceremony in which he was blessed by monks.

"I'm very happy and I thank my supporters," said Cheam Channy, a member of parliament for the opposition Sam Rainsy Party.

He had served just over a year of a seven-year sentence after being convicted of fraud and trying to topple the government in proceedings last August that were dismissed by the international community as a show trial.

"We welcome the release of Cheam Channy. National reconciliation is going quickly because the Cambodian leaders know how to resolve national problems," Kong Korm, acting director of the Sam Rainsy Party, said.

"This is a very important step, that Cambodian leaders work hand-in-hand to serve the nation and the people," he said.

In a surprise move last week, King Norodom Sihamoni slashed four years from Cheam Channy's prison term after a plea for clemency from Hun Sen, leaving only two years to serve and making him eligible for a royal pardon.

Cheam Channy was arrested last February after being stripped of his parliamentary immunity, along with opposition leader Sam Rainsy and another MP Chea Poch.

Sam Rainsy fled to France last year and was sentenced in absentia to 18 months in prison in December for defaming Hun Sen and National Assembly president Prince Norodom Ranariddh.

He was pardoned last night after recanting his long-standing accusation that Hun Sen was behind a deadly 1997 grenade attack on his party supporters.

Sam Rainsy has reportedly reconciled with Prince Ranariddh and is expected to return to Cambodia this week.