Jailed British-Iranian Nazanin Zaghari-Ratcliffe has had her temporary release from an Iranian prison extended for a further two weeks and will be considered for clemency.
Her campaigners said on Saturday it was "a step in the right direction".
Ms Zaghari-Ratcliffe had recently been released for just two weeks on the proviso she wore an ankle tag and her movements were restricted to within 300 metres of her parents’ home in Iran.
She had been due to return to prison on April 4.
Ms Zaghari-Ratcliffe's case has been put forward to the Iranian Prosecutor General for consideration for clemency, her father was told.
The Free Nazanin campaign said on Facebook: "A step in the right direction - let’s hope it’s the first step home."
Ms Zaghari-Ratcliffe has been detained since April 2016 after a visit with her young daughter to visit her Iranian parents.
She was jailed for five years for unspecified espionage offences.
On Saturday, Tulip Siddiq said: "Every extra day Nazanin is out of jail is better than the alternative - but we must not lose focus on getting her home and away from the danger of Coronavirus in Iran as soon as possible #FreeNazanin"
Her family and supporters say she is a pawn in a political game between London and Tehran.
On her release, Ms Zaghari-Ratcliffe had said: “I am so happy to be out. Even with the ankle tag, I am so happy. Being out is so much better than being in. If you knew what hell this place is.
"Let us hope it will be the beginning of coming home.”
Her husband Richard Ratcliffe told Sky News his wife is taking "baby-steps towards freedom."
Iran has temporarily released 85,000 prisoners to try to fight coronavirus, which has killed 2,517 people and infected almost 35,408.