Home Secretary Theresa May is said to have personally reviewed the case of Filimone Lacanivalu, a Fijian ex-soldier threatened with deportation, and decided last night that he could remain in the country.
The 34-year-old, who was part of the British Army for nine years, served with the 2nd Battalion the Yorkshire Regiment in Afghanistan, Bosnia and Northern Ireland.
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Mali has been awarded the PDSA's Dickin Medal for his courage under attack, saving the lives of dozens of British soldiers.
The 49-year-old man from Swanage has been released under investigation, as Gaia's family said they were 'holding on to hope'.