Acre Magistrates Court Judge Moshe Alter reduced all restrictions placed on the suspected killers of Jewish terrorist Eden Natan-Zada, who was lynched by a mob after murdering four Israeli Arabs on a bus in the northern town of Shfaram in August 2005.

Alter said the prosecution has been holding hearings on indicting the suspects for three months and he believed there has been no progress, and therefore expressed doubt that the suspects would ever be indicted.

Eden Natan-Zada, 19, was an Israel Defense Forces deserter who held extreme right-wing views. He lived on the West Bank settlement of Tapuah where he was in contact with members of the outlawed Kach movement.

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Natan-Zada's shooting attack took place during the lead-up to Israel's pullout from the Gaza Strip in August 2005. After he had unloaded his army-issue M-16 assault rifle on fellow passengers on a bus he was beaten to death by the crowd that subsequently gathered.

The lynch suspects have already been released from house arrest, and Alter's decision means that there are no restrictions - such as preventing overseas travel - in place on them at all now.

Attorney Ahmad Raslan, who represents some of the suspects, expressed satisfaction at the decision and called the judge's position courageous.

Raslan said the judge ruled after reviewing a secret police investigation, as opposed to merely relying on the defense's claims.

"The great mountain [of evidence] police tried to present over a year ago ... [with] announcements about indictments can actually be seen as a very small mouse," the attorney said.

Raslan continued: "During this whole period we argued there is no evidence tying the suspects to their alleged acts, and now it appears we were right."

The popular committee formed in Shfaram after the shooting attack also expressed satisfaction.

The committee held a series of protests after the suspects were initially arrested, and during all the court sessions over the question of releasing them but under limiting conditions. It also called for the state to put on trial those who sent Natan-Zada, or didn't consider the possibility of his committing an attack despite very clear indications.