CBC's Derek Stoffel reported the news in a Twitter message Thursday morning. He also reported that their go-ahead to leave the country has been confirmed by Egypt's Foreign Ministry.
CBC's Sasa Petricic is also reporting that the two Canadians are now free to leave the embattled country.
"Their names have been taken off the no-fly list and they are basically free to go," Petricic reported on CBC News Network on Thursday.
Greyson, a Toronto filmmaker, and Loubani, a London, Ont., doctor, have been in Egypt since their arrest in mid-August. The two were arrested, but never faced any formal charge as a series of violent protests erupted in the capital.
They were released from prison last weekend, but prevented from leaving the country because they were on the no-fly list.
Since Sunday, the men have been living in a Cairo hotel while lawyers pushed for their release.
Lawyers had been told the men's cases would have to be processed along with the hundreds of protesters also arrested on Aug. 16. It now appears Egyptian prosecutors have backed down from that position.
"The prosecutors were contemplating all kinds of charges against the group. The charges appear to have been dismissed," Petricic reported.
"They are free to leave but it's not clear when exactly they will be boarding a plane to head back home."
The imprisonment of the two men has been called a "roller-coaster" for their families, and triggered a high-level diplomatic push for their release.