A Turkish court on Friday ruled to release US pastor Andrew Brunson from house arrest. 

The court sentenced Brunson to three years in jail, but said he will not spend any more time in custody because he had already been detained since October 2016. 

The court's decision means Brunson, who was accused of terror links in a case that strained US-Turkey ties, could leave Turkey and return to the US.

Witnesses said Brunson wept as the decision was announced, who appeared in the courtroom in the western coastal town of Aliaga wearing a black suit, white shirt, and red tie. 

Before the judge's ruling, the pastor told the court: "I am an innocent man. I love Jesus, I love Turkey."

The case against Brunson, an evangelical preacher from North Carolina who has lived in Turkey for more than 20 years and was arrested two years ago, had led to US tariffs against Turkey and drawn condemnation from US President Donald Trump.

Brunson was charged with links to Kurdish militants and supporters of Fethullah Gulen, the cleric blamed by Turkey for a failed coup attempt in 2016. Brunson denied the accusation and Washington had demanded his immediate release.

Sources said on Thursday that the US and Turkey had reached an agreement in which some charges against Brunson would be dropped and he would be released at the hearing or soon after.

In addition to the US State Department, US Vice President Mike Pence, speaking at a briefing, declined to confirm any deal, but he voiced hope for Brunson's release.

Four US Senators, including Republican Lindsay Graham and Democrat Jeanne Shaheen, released a joint statement saying Brunson's release would "help improve US-Turkey relations for the long-term."

"The United States and Turkey are NATO allies and have a number of mutual concerns regarding regional security and stability," the senators said. "It is time that we close this ugly chapter in our relations."

Late on Wednesday, US Secretary of State Mike Pompeo said releasing Brunson would be the right thing for Turkey to do.