He was serving a 15-year prison term with hard labor after he was detained in January 2016 in Pyongyang for what North Korea said were hostile acts against its regime.
The US state department said it had secured his release "at the direction" of President Trump but it then emerged that Mr Warmbier has been in coma for more than a year after contracting botulism - a fate his family learnt about a week ago.
But Rodman, who has visited with North Korean leader Kim Jong Un, said the issue of four Americans detained by the North is "not my goal right now". His parents say he's on a Medivac flight on his way home.
Warmbier's family said in a statement that he is in a coma and on his way home.
"We thank you for the opportunity and blessing you've given us to serve your agenda and the American people", said Chief of Staff Reince Priebus, who reports suggest may be at risk of losing his job amid internal palace squabbles. Earlier this year, as we discussed in this space, there were fears that Trump was participating in a unsafe escalation of tensions in the region.
"We're absolutely thrilled. There are many happy people tonight in Wyoming", Wyoming City Council member Jenni McCauley said. North Korea sentenced Warmbier to prison after he admitted trying to steal a propaganda banner during a trip there.
During a government-arranged news conference in Pyongyang, which was held a month before the ruling was handed down, a tearful Warmbier pleaded for his release, saying he stole the banner because a member of his church offered to buy him a used vehicle in exchange.
Coincidentally (or not), Dennis Rodman is now in North Korea.
"U.S. citizens in the DPRK are at serious risk of arrest and long-term detention under North Korea's system of law enforcement", says the latest travel warning, updated last month.
The State Department advises "strongly" against visits by USA citizens to North Korea, noting that at least 16 Americans have been detained there over the last decade.
Rodman talked to a women's basketball team at a gym Wednesday and visited the birthplace of North Korean founder Kim Il Sung.
An American college student who was released from a North Korean prison has been taken to an OH hospital for treatment.
Three other American citizens are being detained in North Korea, at a time when Kim Jong Un has been firing missiles and threatening to strike the United States. It said its special envoy on North Korean policy met with North Korean foreign ministry representatives in Norway last month.
She said US officials had a hard time getting information about Warmbier from North Korea. In addition to Warmbier, three other USA nationals remain in North Korean custody on various allegations of espionage.
In court the student was convicted of "crime against the state". FILE - In this January 8, 2014, file photo, former NBA star Dennis Rodman sings Happy Birthday to North Korean leader Kim Jong Un, seated above in the stands, before an exhibition basketball game at an indoor stadium in Py.
Mr. Warmbier's parents told the Associated Press Tuesday that they recently learned their son has been in a coma since March 2016, or shortly after his show trial.
North Korea still has at least three Americans in illegal custody, no doubt enduring horrific conditions in violation of all norms of human decency.
North Korea on Tuesday freed one of the detainees, Otto Warmbier.
"What an incredible day for one of our citizens who was held in North Korea for more than a year", Nauert said.
However, before his arrival in Pyongyang, Rodman told reporters that pleading to free detained Americans is not the goal of his visit right now.