In March 2004 Libby testified to a grand jury and denied deliberately leaking that Valerie Plame's worked for the CIA.
In October 2005 Libby was indicted by the FBI on five counts: obstruction of justice and two counts each of false statement and two counts of perjury.
In September 2006 the former US deputy secretary of state Richard Armitage confesses to leaking Plame's name and in March 2007 Libby was found guilty on four out of five charges and given a 30-month prison sentence.
Bush said "I respect the jury's verdict. But I have concluded that the prison sentence is excessive.".
President Bush did not grant Mr Libby a pardon and Libby will still face a $250,00 fine and remain on probation, Bush did however commute Libby's jail sentence.
The announcement from President Bush was prompted by a federal court decision earlier yesterday not to allow Mr Libby to remain at home pending the outcome of an appeal that would have meant that he would have been heading to jail within the next few weeks where he was expected to have served out his time in a minimum security jail.
Critics had suggested that Libby's strategy had until then appeared to be to string out the appeal until January 2009 in expectation of a pardon when Mr Bush left office.
The Democratic leader in the Senate, Harry Reid described Mr Bush's action as "disgraceful" and Charles Schumer, a Democratic senator was to reported to have said "As independence day nears, we're reminded that one of the principles our forefathers fought for was equal justice under the law. This commutation completely tramples on that principle.".
Fred Thompson, a Republican welcomed the decision from Bush, noting Mr Libby's long service to the US.
Has President Bush acted as a democratic leader or a dictator in this matter? Should those that hold positions of high office be held more, and not less accountable, than those that they represent?
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