Israeli police say they have released Mohamend Hussein after questioning the leading Muslim cleric about scuffles at the al-Aqsa mosque on Tuesday.
A spokesman said Hussein was released on Wednesday afternoon.
The Mufti was taken into police custody for questioning early on Wednesday, in the wake of disturbances at the al-Aqsa mosque on Tuesday.
The disputed hilltop in Jerusalem's Old is home to the al-Aqsa mosque but is also revered by Jews as the Temple Mount.
Palestinians condemned the detention, whilst the Jordanian parliament voted unaminously to expel the Israeli ambassador from the country.