LONDON -- Julian Assange was granted conditional bail on Thursday as the High Court in London rejected an appeal by prosecutors to keep the WikiLeaks founder behind bars while he battles an extradition attempt by Sweden.

Cheers broke out outside the court as the verdict by High Court Justice Duncan Ouseley was reported. Ouseley then outlined the bail conditions to the 39-year-old Australian in a courtroom crowded with lawyers, journalists and supporters.

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Assange had been granted bail for 240,000 pounds (about US$360,000) by Westminster magistrates on Tuesday, but remained in custody as prosecutors appealed the decision.

Assange has been in 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.

WikiLeaks last month deeply angered American officials by beginning to publish its trove of 250,000 secret US diplomatic cables.

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.