SYDNEY, Australia — An Australian businessman who was jailed in China after a dispute over his company there has been granted early release from a prison in Australia, 19 months after being returned to his home country to complete his sentence, under a treaty between the two countries.

The businessman, Matthew Ng, was released from a Sydney prison on Wednesday afternoon, said Tom Lennox, a lawyer who had campaigned for his release. “It is very good news,” Mr. Lennox said by telephone. “He’s out. It’s just great.”

Mr. Ng was sentenced by a Chinese court in 2011 to more than 12 years in prison on bribery and fraud charges. Mr. Lennox has said the case was fabricated to allow a Chinese state-owned company to confiscate Mr. Ng’s travel business.

Australia’s justice minister, Michael Keenan, said in a statement on Wednesday that he had approved Mr. Ng’s early release “based on his exceptional family circumstances.” Since his arrest, Mr. Ng’s eldest daughter has died and his wife learned she had cancer.