Lagarde, seemingly relieved and insisting it's time to return to work, said the Paris court handed her the status of "assisting witness" in its probe of her role in a 400 million euro ($520 million) pay-off to a flamboyant tycoon, Bernard Tapie. Under French law, that status means she still could be later charged in the case, but can have legal representation and access to court files as the probe continues ' a process that could take months or even years.

The case centers on the payment made to Tapie, a well-connected magnate, in a private arbitration process to settle a dispute with state-owned bank Credit Lyonnais over the botched sale of Adidas in the 1990s. The deal is seen by many in France as an example of the cozy relationship between big money and power in France.

Investigators opened an inquiry in 2011 into possible charges of "complicity to embezzlement of public funds" and "complicity to forgery." The probe may not result in a trial. If it does, and if Lagarde were to be charged and then convicted, she could face up to 10 years in prison, according to prosecutors.

Tanned, relaxed and seemingly unfazed, Lagarde said in a brief statement to reporters outside the court that the questioning had allowed her to "demonstrate that I have always acted in the best public interest and in accordance with the law ... Now, it's time for me to go back to work in Washington, and I will of course be briefing my board."

Still, Friday's decision by the special court for government ministers prolongs the legal question-mark over her head.

At the very least, the closed-door hearings took Lagarde away from her international duties. So far, the Washington-based IMF has stuck by her. She has earned praise for her negotiating skills as its managing director during Europe's debt crisis, and is seen as a trailblazer for female leaders.

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