"The body of Majid al-Majid will be handed to the embassy of Saudi Arabia, and will then be repatriated," prosecutor Samir Hammoud, who ordered the handover, told AFP.
Majid was the head of Saudi-backed terrorist group of Abdullah Azzam Brigades, which claimed responsibility for a November deadly attack on the Iranian embassy in Beirut that killed 25 people.
He died last week, days after his detention by the Lebanese military suspiciously in a Lebanese hospital.
Officials claimed that Majid suffered from kidney disease and was in poor health when he was detained.
Iranian embassy in Beirut requested access to Lebanon's investigation into the double suicide bombing.
A senior Iranian lawmaker said earlier that Saudi Arabia orchestrated the murder of Al-Majed.
“We believe that the mastermind behind the explosions in front of the Iran Embassy in Beirut and behind the murder of Majed Al-Majed is Saudi Arabia,” said Mohammad Hassan Asafari who sits on the National Security and Foreign Policy Committee of Majlis.
Asafari said Al-Majed’s death occurred at a time when his information was going to shed light on the recent assassinations and terrorist attacks in the Middle East.
The Iranian lawmaker added that Lebanese officials’ failure to establish the cause of Al-Majed’s death would prompt security challenges for the country in the future.
The Iranian embassy attack came amid rising tensions created by Saudi backed terrorist groups in Syria and neighboring Lebanon.
In 2009, Lebanon handed Majid a life sentence in absentia after convicting him of membership of another Al-Qaeda-inspired group, Fatah al-Islam.
NJF/NJF