Algerian Nasserdine Menni was found guilty of supporting suicide bomber Taimour Abdulwahab, who blew himself up in a blast in Sweden in December 2010.
A world-wide probe uncovered Menni's links to Muslim extremist Abdulwahab.
Menni claimed asylum while in Glasgow and it was money earned here from benefits and low-paid jobs that was intended to help carry out a mission to kill innocent citizens.
Menni was locked up for seven years in August 2012 for providing £6725 in the knowledge it could be used for terrorism.
His legal team yesterday challenged the jail term at a Court of Appeal hearing in Glasgow. Lord Gill sitting with Lords Menzies and Brodie reduced the sentence to three years and backdated it to March 2011, when Menni was taken into custody, meaning he had effectively served his sentence.
But it is thought Menni will not be freed while he awaits being deported from the UK.
A jury at the High Court in Glasgow in 2012 heard how Menni's links to Taimour Abdulwahab emerged following a probe after a bombing in Sweden.
Abdulwahab - an Iraqi-born Swedish citizen - killed himself in December 11, 2010 in the blast in Stockholm.
Devices, including a pressure cooker filled with explosives, failed to detonate but two people were hurt
Menni arrived in Britain around 2002 and ended up in Glasgow seven years later.
He deposited £5725 to help pay for Abdul-wahab's trips for "Jihad". Another £1000 was sent for Abdulwahab's wife after his death.