A U.S. flag flies over Camp VI at the U.S. military prison for people designated enemy combatants, June 26, 2013, in Guantanamo Bay, Cuba. Joe Raedle / Getty Images

A Yemeni man being held at the Guantanamo Bay detention camp in Cuba, Mahmud Mujahid, who was previously deemed too dangerous to release, has been re-evaluated by a U.S. government panel reviewing cases as part of an effort to close the prison, officials said Thursday.

The six-member board decided that Mujahid, 33, who has been held at Guantanamo since January 2002, no longer poses a "continuing significant threat" to the United States and is eligible for transfer out of the base, the Pentagon said in a statement.

Although he was never charged with a crime, Mujahid was accused of being an Al-Qaeda fighter and a bodyguard for Osama bin Laden.

He was one of dozens of men designated as too dangerous to release but could not be prosecuted for reasons like a lack of evidence or jurisdiction. President Barack Obama directed authorities to review the cases of those detainees as part of a renewed effort to close Guantanamo Bay, where the U.S. currently holds 155 men.

The president's directive established the Periodic Review Board (PRB), which is tasked with reviewing whether continued detention of those held at Guantanamo remains necessary to protect against a significant threat to U.S. security.

Mujahid was the first prisoner to go before the PRB. He appeared with his lawyer and two personal representatives by video link from the base with representatives of six government agencies — including the Defense, Homeland Security, Justice and State departments — in Washington.

Mujahid's lawyer, David Remes, welcomed the news.

"It's been a long time coming," Remes said. "He never should have been held, and now after 12 years he should be reunited with his family. There is no longer any excuse for keeping him at Guantanamo."

Army Lt. Col Todd Breasseale, a spokesman for the Department of Defense, told Al Jazeera in a statement that no timetable has been established for Mujahid's transfer.

"Many factors go into the equation to determine suitability for transfer, among them, finding a host nation that will make the necessary, verifiable security assurances and who will not submit the man to persecution," Breasseale said in the statement, referring to Mujahid and others who have been designated for potential transfer out of the prison.

Breasseale also said that panel reviews for other detainees will take place in the coming weeks.

The U.S. previously barred any transfers of prisoners to Yemen because of instability in the country, so it is unclear what will happen with Mujahid.

Obama has since said future releases to Yemen would be made on a case-by-case basis. Of nearly 80 prisoners at Guantanamo cleared for transfer or release, more than 50 are from Yemen.

Al Jazeera and The Associated Press. Philip J. Victor contributed to this report.