Police on Friday released two men arrested in an anti-terror sweep last month but said they remained suspects in the investigation.
Five other men are being held on suspicion they were planning a terror attack.
The suspects were arrested in a Sept. 5 raid in the central city of Odense, in which police also seized material they said could be used to make explosives.
"The police and the prosecution have decided that there are no more reasons to keep two of them in custody," said Arne Gram of the Odense Police. "This has no consequences for the five others."
Justice Minister Lene Espersen has said the suspects were planning a terror attack, most likely in Denmark.