A Montreal man whom police fear will commit a terrorist-related act is free to live his life -- albeit under heavy surveillance -- after a court appearance on Thursday.

Merouane Ghalmi signed a peace bond agreement in March that severely limits his movements and keeps him under police surveillance.

He was arrested in May and accused of violating one of his conditions, but granted bail until his appearance in court this week.

Ghalmi's lawyer submitted new evidence on Thursday, leading the Crown to drop the charges of violating the peace bond.

"Following new elements that were discovered, it is our duty to re-evaluate files on a regular basis, which was done in this case. With the new information, there was a decision taken to ask for the withdrawal of the charges," said Crown prosecutor Lyne Decarie.

The kickboxer's year-long agreement has him wearing a GPS-tracking bracelet, not use the internet, and not contact anyone in Syria. He also gave up his passport and gave police passwords to all his electronic devices.

Ghalmi is also forbidden from speaking to fellow Montrealer Daniel Minta Darko.

Police have never publicly disclosed exactly what terrorism-related offence they suspect Ghalmi of wanting to commit. That information is contained in a sealed warrant.