The teenager, who cannot be named as he was a minor at the time of the crime, was sentenced to three years in a reform facility in August 2013 - the maximum term possible for a juvenile.
The petitioner, politician Subramanian Swamy, requested the Delhi high court to stop his release, due on Sunday.
Some activists and the parents of the victim also wanted the teenager to stay in jail, saying "he can be a threat to the society".
But on Friday, the court said the convict could not be kept in the correctional home because he had served the maximum term possible under the law
The rape and the subsequent death of the woman had caused global outrage.
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