The ringleader and two senior members of the Iraq-based armed opposition of the Islamic Republic, PJAK (Party for a Free Life in Kurdistan) - an offshoot of the Kurdistan Workers' Party (PKK) - were arrested at their residences in Germany on Friday.
Abdurrahman Hajji Ahmadi was released on Monday.
In reaction to the report, the Iranian Foreign Ministry's Director-General for Iranian Expatriates' Affairs summoned Erbel, and informed him of the Islamic Republic of Iran's protest against the measure.
Erbel, for his part, announced that the German government does not support the members of the PJAK terrorist group, and promised to convey Tehran's message to the German government and inform the Iranian Foreign Ministry of the results.
Erbel had also earlier been summoned by the Iranian parliament over the issue.
"We invited the German Ambassador to the parliament to voice our regret and surprise over the freedom of PJAK (terrorist) group's leader," Chairman of the parliament's National Security and Foreign Policy Commission Alaeddin Boroujerdi told FNA on Tuesday.
Reminding the crimes committed under the command of PJAK leader Abdurrahman Hajji Ahmadi and Iran's insistence on his extradition from Germany, Boroujerdi said, "The German government is strongly expected to conduct the necessary studies over this terrorist."
He further questioned German justifications for the release of Ahmadi, and stressed, "Germans argue that this terrorist has become a citizen of Germany, but no matter he has received German citizenship or not, terrorists should not enjoy freedom in Germany or any other European state because terrorists should be confronted proportionate to their crimes in every part of the world."
PJAK, a militant Kurdish nationalist group with bases in the mountainous regions of northern Iraq, has been carrying out numerous attacks in western Iran, southern Turkey and the northeastern parts of Syria where the Kurdish populations live.
The separatist group has been fighting to establish an autonomous state, or possibly a new world country, in the area after separating Kurdish regions from Iran, Iraq, Turkey and Syria.
The outlawed group has been staging attacks across the border in Iran since 2004.
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