Egypt's official news agency quoted a security official as saying that Mubarak and his two sons, Gamal and Alaa, would not be released pending retrial following Tuesday's court decision.
The official said that the trio would remain in detention on grounds that the court decision had not included a release order.
He added that the defendants' release was up to the prosecution authorities or the court that would preside over the retrial.
However, a source from the prosecution authorities told The Anadolu Agency that Mubarak was now legally eligible for release.
"It is likely that Mubarak will be released now that the only conviction against him has been overturned," the source told AA.
Farid al-Deeb, Mubarak's lawyer, had told reporters earlier that he planned to file a request for the release of Mubarak's two sons, who had – prior to their sentencing – already served out the maximum limit for temporary detention.
"[Mubarak] has already served out three years in detention," al-Deeb said.
He added that Mubarak, 86, would remain in the southern Cairo military hospital – where he has spent most of his detention period – for health reasons.
Earlier Tuesday, Egypt's highest appellate court ordered the retrial of Mubarak and his two sons after accepting their appeal against jail sentences they received last year for corruption.
In May of last year, Mubarak was sentenced to three years in jail while his two sons were slapped with four-year jail terms each after being found guilty of embezzling public funds allocated for the maintenance of presidential palaces and forging official documents.
The public funds were instead used to build, upgrade and furnish their own private properties.
The three were also ordered to pay back some 21 million Egyptian pounds (roughly $3 million) to the state and pay fines worth a total of 125.7 million Egyptian pounds (around $17 million).
In late 2012, Mubarak and his interior minister, Habib al-Adly, were both sentenced to 25 years each in prison for their involvement in the murder of demonstrators during a popular uprising one year earlier that had unseated the strongman after 30 years in office.
But another court later ordered a retrial after the former president's lawyers successfully appealed the sentence.
Last November, all the defendants in the case were cleared of murder charges.