Phillipos awaits trial for allegedly lying to federal authorities in the investigation of two deadly bombings at the Boston Marathon finish line on April 15.
Phillipos, 19, was charged with lying to investigators. He faces up to eight years in prison if convicted. He was a student at the University of Massachusetts-Dartmouth with Dzhokhar Tsarnaev. Dzhokhar and older brother Tamerlan Tsarnaev are believed responsible for the Marathon bombings.
Prosecutors initially asked that Phillipos be held while he awaits trial, arguing that he poses a serious flight risk.
But prosecutors and Phillipos' lawyers said Monday in a joint motion they now agree that Phillipos can be released under strict conditions, including home confinement, monitoring with an electronic bracelet and a $100,000 secured bond.
The Associated Press contributed to this report.