Bella May Culley, 19, who is eight-months pregnant, was arrested at Tbilisi Airport in May.
It was alleged the 19-year-old, from Billingham, tried to smuggle 12 kilograms of marijuana and two kilograms of hashish into the country.
Wearing a cream blazer, the teenager looked overwhelmed as she was released from custody on Monday.
Asked how she felt she said she was “happy” and told reporters that she did not expect to be freed.
Culley’s mother, Lyanne Kennedy, held her daughter’s hand as she was released.
Georgian prosecutors were considering a two-year sentence, but “decided to consider the time she has already served”, Prosecutor Vakhtang Tsalughelashvili told The Associated Press (AP).
Lawyers representing the teenager have been locked in negotiations with judicial authorities in Georgia, with details expected to be released later.
Culley’s family has paid more than £137,000 as part of a plea deal aimed at reducing her sentence.
She could have faced a penalty of up to 15 years, or life imprisonment.
Her lawyer, Malkhaz Salakaia, told AP that Culley would be given her passport and would be free to leave the country on Monday.