However, the board rejected the extension plea and ordered Saeed's release.
Saeed had been under house arrest for the past 10 months since January but was set free after the Pakistan government chose to not keep in custody him further in links with any case against him.
Pakistan has been detaining and freeing Saeed off and on since the attack and he and four of his aides were put under house arrest in Lahore in January.
While Saeed was under house arrest, his JuD charity launched a political party, the Milli Muslim League (MML), which has won thousands of votes in by-elections. His aides had been released earlier. He used the release order to support his claims of "innocence".
"I fight the case of Kashmiris".
Saeed's release angered neighboring India, which for years has asked Pakistan to take action against all those linked to the Mumbai attack.
Pakistan officially banned the Lashkar-e-Taiba in 2002.
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Eight-year-old Pradyuman was found in a pool of blood with his throat slit inside his school, Ryan International in Gurugram. He also also told that there has been havoc all over India because of the murder and he must take responsibility of it.
"India, as indeed, the entire global community is outraged that a self-confessed and UN-proscribed terrorist is being allowed to walk free and continue with his evil agenda", MEA spokesperson Raveesh Kumar told a press conference here.
The fire-brand cleric's release after midnight came ahead of the 9th anniversary of the 26/11 Mumbai attacks in which 166 people were killed. The Ministry of External Affairs opined that the release of Hafiz Saeed is an attempt by Pakistan to "mainstream" those blacklisted terrorists.
"The US reiterates its stance that LeT is a designated Foreign Terrorist Organisation responsible for the death of hundreds of innocent civilians in terrorist attacks, including a number of American citizens", the spokesperson told PTI.
The assault brought nuclear-armed neighbors Pakistan and India to the brink of war. Indian authorities detained one of the assailants, Mohammed Ajmal Kasab, who was sentenced to death and later hanged in the city of Pune in India.
The Taj Mahal hotel in Mumbai was scene of the militants' final siege after three days of terror.
India has said the attackers entered Mumbai by boat carrying cellphones, grenades and automatic weapons.
In a video message after the court decision, Saeed claimed that he was detained because of his associations with the disputed Kashmir region. "I will gather the people from across the country for the cause of Kashmir and we will try to help Kashmiris get their destination of freedom", said Saeed while addressing his supporters gathered outside his house.