For a man who spent most of the past 20 years in exile, and the past eight months in jail, the figure of former prime minister Thaksin Shinawatra still looms large over Thailand.

His release from prison, at the age of 76 and wearing an electronic ankle bracelet, after serving part of a one-year sentence for corruption and abuses of power during his terms as prime minister from 2001 to 2006, was headline news in Thailand.

Hundreds of supporters wearing red cheered as Thaksin emerged from Bangkok's Klong Prem jail on Monday, wearing a white shirt and with his hair cropped short.

He was greeted by family members, including his daughter and protege, former prime minister Paetongtarn Shinawatra.

His party Pheu Thai's insistence that from now on he will remain in the background could not stop feverish media speculation over what role he might still play in Thai politics.