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Tebbutt was flown out of Adado, Somalia, to the Kenyan capital, Nairobi.
CNN: Somali pirates release British hostage
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Adado's administration chief said other top pirates had also agreed to disarm.
BBC: Somali pirate 'Big Mouth' quits
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Tebbutt's release came after lengthy negotiations between elders in Adado and local authorities, said Omar Mohammed Diirey, a regional administration official in central Somalia.
CNN: Somali pirates release British hostage
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"We persuaded them to disarm and hand over whatever they have - boats and weapons, " Mohamed Adan, the leader of the Adado administration, told the BBC Somali service.
BBC: Somali pirate 'Big Mouth' quits
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The British couple Paul and Rachel Chandler were also held in Adado for more than a year after they were seized from their yacht off the Seychelles in 2009.
BBC: Somali pirate 'Big Mouth' quits
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"After being in piracy for eight years, I have decided to renounce and quit, and from today on I will not be involved in this gang activity, " AFP news agency quotes Afweyneh as saying at a news conference in Adado on Wednesday.
BBC: Somali pirate 'Big Mouth' quits