An Australian journalist who was detained in China for three years returned to her home country on Wednesday after being released. Observers say the move indicates that once soured ties between the two countries may be improving.

Australian Prime Minister Anthony Albanese said at a news conference in Melbourne on Wednesday that Cheng Lei had been freed and had returned home in the morning.

The Australian government had repeatedly requested the release of the anchor at China's state-run broadcaster CGTN since she was detained in August 2020 on charges of illegally supplying state secrets overseas.

Albanese said the government had been seeking her release since her detention, and that her return will be "warmly welcomed not just by her family and friends but by all Australians."

As for the reason for her release, he said it followed the "completion of legal processes in China."

A photo published by Australia's foreign affairs department shows Cheng and Foreign Minister Penny Wong embracing.

Relations between the two countries soured in 2020 over Australia's call for an independent inquiry into the origins of the coronavirus. The Albanese government, which was inaugurated in May last year, has been working to improve ties.

The prime minister is expected to visit China later this year for a meeting with President Xi Jinping.

Chinese Foreign Ministry spokesperson Wang Wenbin told reporters on Wednesday that Cheng was deported in line with the law after serving her sentence.

Wang said Chinese judicial authorities tried the case in accordance with the law and that Cheng's rights had been protected including her right to meet with consular officials.