London: WikiLeaks' founder Julian Assange was freed on bail on Thursday while he fights extradition to Sweden over allegations of sex crimes, Britain's Press Association news agency reported.
Assange is the target of US fury over WikiLeaks' release of secret diplomatic cables.
High Court Justice Duncan Ouseley said earlier the 39-year-old Australian could be freed on bail of 200,000 pounds ($317,000) and under strict conditions, including abiding by a curfew, reporting to police daily and wearing an electronic tag.
The judge threw out the appeal against a lower court's decision earlier this week to release Assange on bail pending moves to extradite him to Sweden for questioning over allegations of sexual assault.
He said he did not believe there was a risk that Assange would try to flee the country.
"The court does not approach this case on the basis that this is a fugitive from justice who seeks to avoid interrogation and prosecution," the judge said.
Assange will now be required to stay at the 600-acre (240-hectare) country estate of supporter Vaughan Smith, a former soldier who founded the Frontline Club, a media club in London where WikiLeaks has based part of its operation.
His supporters have helped to put up bail totalling 240,000 pounds (283,000-euro, 374,000-dollar). Assange will also have to wear a security tag.
The judge made a small adjustment to the bail conditions set out on Tuesday, involving the times Assange must report to police near the mansion in Suffolk, eastern England.
A small group of Assange's supporters braving the driving rain outside the court roared with delight at the news of the ruling and shouted: "Exposing war crimes is no crime."
Assange's supporters say the allegations are politically motivated because WikiLeaks has enraged Washington by releasing US diplomatic cables and classified information about the wars in Iraq and Afghanistan.
The appeal had been lodged by British prosecutors acting for Sweden, but not on a direct request from Stockholm, Britain's top state prosecutor said earlier Thursday.
Earlier, scores of reporters filled the wood-paneled courtroom and public gallery of London's High Court, along with teams of lawyers, Assange supporters and his mother, Christine Assange.
Assange stood in a dark gray suit in the courtroom dock as judge Duncan Ouseley began hearing an appeal by British prosecutors acting on behalf of Sweden.
The WikiLeaks leader has been in a UK prison since December 7, following his surrender to British police over a Swedish sex-crimes warrant. He denies wrongdoing but is refusing to surrender to Sweden's request to extradite him for questioning.
Assange was granted a conditional release on 200,000 pounds ($316,000) bail Tuesday, but prosecutors are trying to keep him behind bars until his extradition hearing in January.
Lawyers acting for Sweden say Assange is accused of rape, molestation and unlawful coercion by two women for separate incidents in August in Sweden. He has not been charged.
Assange's lawyers say the allegations stem from a dispute over "consensual but unprotected sex" and argue that he has offered to make himself available for questioning via video link or in person in Britain.
Last month WikiLeaks deeply angered US officials by beginning to publish its trove of 250,000 secret US diplomatic cables, after earlier publishing thousands of secret US military documents on the wars in Iraq and Afghanistan.
Assange's supporters suspect the claims against him are politically motivated - a charge Sweden has denied.
'Person of the year'
Meanwhile, Thursday's court ruling was made as angry Assange supports around the world reacted to Time magazine's selection of Facebook founder Mark Zuckerberg as Person of the Year 2010 over Assange.
Within hours of the announcement, Time posted a link on Twitter explaining why they chose the Harvard dropout over Assange, who led the release this year of more than half-a-million sensitive government cables and reports to the chagrin of the US and its allies.
Zuckerberg, 26, was chosen over Assange who placed first in the Time reader poll with 382,020 votes of a total 1.25 million votes cast compared to Zuckerberg who placed dead last of the top 10 for which readers voted.
Thisorthat.com blog took potshots at Time's selection of Facebook's Zuckerberg, noting that it "seems three to four years too late" and asked: "What's next year's winner going to be, the Transformer's movie?"
With input from agencies