Iran plans to free the two American hikers held on spy-related charges in a humanitarian gesture.

Iranian President Mahmoud Ahmadinejad announced he would free the hikers, in an interview during NBC's "Today" program that aired Tuesday.

Josh Fattal and Shane Bauer's bail has been set at $500,000 each. The move clears the way for their release a year after a similar bail-for-freedom arrangement for Sarah Shourd, the third member of the group.

During their trial in August, the men were sentenced to eight years in prison.

Bauer and Fattal were arrested more than two years ago after they and Shourd crossed into Iran during a hiking trip.

The three have always maintained their intrusion across the Iranian border was an accident.