The 20-year-old was arrested in England yesterday, Tuesday, August 3.
She was lown back to the North of Ireland for questioning at Strand Road police station in Derry.
A PSNI spokeswoman said on Wednesday afternoon: “The 20-year-old woman arrested by detectives investigating the murder of Katie Simpson has been released on bail, pending further enquiries.”
Detective Inspector Mark Gibson said yesterday: “We continue to investigate the circumstances surrounding the murder of 21 year old Katie who died at Altnagelvin Hospital on August 9, 2020, following an incident at an address in Gortnessy Meadows of Derry on August 9, 2020.
“I am asking you today, if you have any information that could assist us with our investigation, no matter how insignificant you may think it is, please contact police. Your information could be that vital piece we need to bring those responsible for Katie’s death to justice.
“Katie deserves justice.
“Katie’s family deserve justice.
“If you have any information please contact detectives on 101, quoting reference 306 03/08/20.
“Or you can submit a report online using our non-emergency reporting form via http://www.psni.police.uk/makeareport/
“You can also contact Crimestoppers anonymously on 0800 555 111 or online at: http://crimestoppers-uk.org/
Jonathan Cresswell, 33, of Briar Hill Gardens, Greysteel, Co Derry, is accused murdering Katie Simpson following an incident in Gortnessy Meadows, Lettershandoney, on August 3,2020.
She died in Altnagelvin Hospital in on August 9 having never regained consciousness.
Conditional bail was granted at a High Court hearing last month.
A prosecution barrister told the court there had been a significant number of developments while Cresswell, who was in a relationship with Ms Simpson’s sister, had been in custody.
He said he remained opposed to bail and pointed out a number of significant witnesses had now come forward.
Counsel for the defence questioned why the witnesses in question didn’t come forward earlier.
The judge noted the new evidence but said he remained satisfied bail could be granted at £30,000.
The accused is banned from attending any equestrian events or selling horse stock, cannot enter Co Armagh and must have no contact with any witnesses.
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