A ransom of $1 crore, amounting to ₹ 64, 03, 75, 000 was paid to the Islamic militants for the release of Father Tom Uzhunnalil.
The Islamic militants who had abducted the priest had demanded ₹3 crore for his release.
The Kerala priest, who hails from Kottayam was abducted in March 2016.
In a statement, Oman said that its government was instrumental in the rescue of the Vatican employee.
"In response to the Royal Orders of His Majesty Sultan Qaboos bin Said and as per a request from the Vatican to assist in the rescuing of a Vatican employee, the concerned authorities in the Sultanate, in coordination with the Yemeni authorities, have managed to find a Vatican government employee. He was transferred this morning to Muscat in preparation for his return home," the government said in a statement online.
He was first brought to Muscat and according to local reports, the Kerala priest now is being flown to Europe.