Julian Assange, the founder of WikiLeaks, has been granted bail.

Assange, who was arrested in London last week, is wanted in Sweden on one count of unlawful coercion, two counts of sexual molestation and one count of rape. He has been in prison since his arrest after turning himself in on December 7.

As part of the bail conditions, Assange will be required to wear an electronic tag and surrender his passport, as well as being given a curfew and reporting to the police station every day at 6pm. A surety of £240,000 is also in place. Assange must return to court on January 11 for the extradition hearing.

However, Swedish prosecutors revealed they will appeal against the decision. They have a two-hour window in which to appeal and Assange will not be freed until the window has passed.

"We doubt whether this actual category of rape would be rape under English law," said Assange's lawyer, Geoffrey Robertson.

WikiLeaks recently began publishing more than 250,000 US Department of State cables containing sensitive conversations, including some which link China to the attacks on Google at the beginning of the year.

The publication of the cables has angered the US government and lead a number of firms to withdraw support for WikiLeaks. Mastercard, Visa and PayPal are among the firms withdrawing support and have stopped processing donations to the website.

However, a group of online activists known as the Anonymous group launched revenge DDoS attacks on the three payment firms. It was also predicted that Anonymous might target UK government websites if Assange is extradited.

WikiLeaks recently distanced itself from the attacks .

"These denial of service attacks are believed to have originated from an internet gathering known as Anonymous. This group is not affiliated with Wikileaks. There has been no contact between any WikiLeaks staffer and anyone at Anonymous," Kristinn Hrafnsson from the organisation said, in a statement posted on the WikiLeaks website.

See also: WikiLeaks: China pressured Google on internet censorship