A longtime member of Bernie Madoff’s inner circle will be freed on $5 million bail under a deal reached with federal prosecutors yesterday.

Joann Crupi, 49, will secure the bond with $2 million in cash and assets.

Crupi was arrested Thursday at her $2.5 million home in Westfield, NJ, on charges of conspiracy, fraud and falsifying documents that could send her to jail for 65 years. She allegedly received $2.7 million directly from Madoff just in 2008.

Under the bond agreement announced yesterday, she will surrender her passport and undergo electronic monitoring.

The arrest of Crupi, who worked for Madoff for 25 years, and Annette Bongiorno, Madoff’s personal secretary, brings the number of people arrested in the Madoff scandal to eight.