Assange, who has spent a week in solitary confinement, is fighting attempts to extradite him to Sweden for questioning over allegations of sexual misconduct made by two female WikiLeaks volunteers.

Assange and his lawyers have voiced fear that US prosecutors may be preparing to indict him for espionage over WikiLeaks' publication of the US secret cables.

Supporters in the court and pro-WikiLeaks protesters outside the building had earlier cheered the decision to free Assange.

John Pilger,a journalist, had offered to put up bail money for Assange.

He said, "The fact that he has been in solitary confinement in Wandsworth prison is a disgrace but he has now got a whiff of British justice at last,"

Supporters believe that Assange was put in the tough situation because WikiLeaks released secret US diplomatic cables, including ones on Iraq and Afghanistan.

Assange denies any wrongdoing and his lawyers say he plans to fight Sweden's extradition request.