A Serbian appeals court has overturned a one-year prison sentence for the widow of former strongman Slobodan Milosevic and ordered a retrial.

Mirjana Markovic is believed to be living freely in Moscow since 2003 despite the legal proceedings against her in Serbia.

A Belgrade court last year convicted Markovic of abusing her position in 2000 when she helped allocate a state-owned apartment to her grandson's nanny.

But the Appeals Court said on Tuesday that the verdict was flawed and that a new trial must be held.

Markovic had also been sought for questioning over the killing of Milosevic's political opponents during his autocratic rule in the 1990s.

Milosevic was ousted from power in 2000. He died in 2006 while on a genocide trial at a U.N. tribunal in The Netherlands.