Wikileaks founder Julian Assange AP
Wikileaks founder Julian Assange gestures as he speaks about the United States and the human rights during a press conference at the Geneva press club in Geneva, Switzerland. Nov. 4, 2010 Photo by AP
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A British judge granted bail to WikiLeaks founder Julian Assange on Tuesday, but he remained in custody pending a possible appeal.

Swedish authorities were given two hours to lodge an appeal and their lawyer, Gemma Lindfield, said it was likely she would.

The 39-year-old Australian, whose website has provoked U.S. fury by publishing some of a trove of 250,000 classified U.S. diplomatic papers, was accused this year of sexual misconduct by two female Swedish WikiLeaks volunteers during a stay in Sweden. He denies wrongdoing and his lawyer says he plans to fight extradition.

At Tuesday's hearing, District Judge Howard Riddle said Assange must abide by strict bail conditions. He must wear an electronic tag, live at a registered address, report to police every evening and observe two four-hour curfews each day.

A total of 240,000 pounds ($380,000) was put up as a guarantee by several supporters.

Assange's next court appearance was set for Jan. 11.

Supporters outside City of Westminster Magistrates' Court erupted in cheers when they heard news of the judge's ruling.

Lindfield, acting on behalf of Swedish authorities, had asked the court to deny Assange bail because the allegations in Sweden were serious, Assange had only weak ties to Britain and he had enough money to abscond