Dominique Strauss-Kahn, the former head of the International Monetary Fund, who is accused of sexually assaulting a hotel housekeeper, was released from house arrest on Friday as the case against him moved closer to dismissal after prosecutors told a Manhattan judge that the credibility of his accuser was in serious question.

Prosecutors acknowledged that there were troubling revelations and glaring inconsistencies in various accounts given by the housekeeper, who accused Mr. Strauss-Kahn of trying to rape her in May. In a brief hearing at State Supreme Court in Manhattan, prosecutors did not oppose his release; the judge then freed Mr. Strauss-Kahn on his own recognizance.