The newspaper announced that reporter Judith Miller was freed from prison when her source agreed to reveal their identity.
“That source was I. Lewis Libby, Vice President Dick Cheney’s chief of staff,” the newspaper said, citing “people who have been officially briefed on the case.”
Miller had served 12 weeks of an 18 month sentence handed down by a court investigating who in the Bush administration leaked the details of a CIA agent to the media.
The court had pressed Miller and another journalist to reveal their sources after CIA spy Valerie Plame was named in a newspaper.
In a statement released by the New York Times, Miller said “it’s good to be free.”
“I went to jail to preserve the time-honored principle that a journalist must respect a promise not to reveal the identity of a confidential source,” the statement said.
“I chose to take the consequences — 85 days in prison — rather than violate that promise,” she said.
Miller is expected to testify before a Grand Jury as soon as Friday.
“I am leaving jail today because my source has now voluntarily and personally released me from my promise of confidentiality regarding our conversations relating to the Wilson-Plame matter,” she said.
Plame’s husband, former US ambassador Joseph Wilson claims her name was leaked in revenge for an article he wrote that criticised US President George W Bush’s rationale for the Iraq war.
The case investigating the leak has featured interviews with Mr Bush, former secretary of state Colin Powell and Mr Bush’s chief political advisor Karl Rove, and raised questions about the freedom of the press.