WikiLeaks founder Julian Assange was today granted bail by a British court on strict conditions in a case related to charges of sexual offences but the Australian will remain in prison after Swedish prosecutors decided to appeal the judgement.

The court had earlier granted Assange conditional bail on the requirement of a bond amount of 240,000 pounds, among other conditions to ensure that he does not flee the country.

The 39-year-old Australian, who was accused of sexual misconduct by two women in Sweden, is resisting an extradition claim by the country.

As part of the bail conditions, Assange must also surrender his passport, obey a curfew at a specified address, wear an electronic tag and report to a local police station every evening.

A number of high-profile individuals including Mick Jagger and Jemima Khan are willing stand guarantee for Assange.

But he is now expected to remain in prison until the appeal is heard in the next 48 hours, and until a 200,000 pound cash required up-front by the court is collected.

Assange, who has earned the wrath of the US for leaking a huge cache of secret diplomatic documents, has been imprisoned for a week now after he gave himself up to Scotland Yard here.

The WikiLeaks founder appeared in the Westminster Magistrate's court amid scenes of bedlam outside the court where his supporters protested to seek his release.

Assange denies sexually assaulting the two women in Sweden.

Speaking to reporters outside the court after the hearing, Assange's lawyer Mark Stevens said his client has been granted bail but the problematic condition is that it requires the payment of 200,000 pounds in cash, suggesting that it might take more time to gather it.

"That's an awful lot of money and its a pity that he can't use Mastercard or Visa in order to assist him to arrange that and in terms of that its clearly going to take us an inordinately long period of time to gather that together," he said.

Stevens said one of the reasons Assange had chosen to fight the case in the UK was his belief in British justice.

"... and of course he has been encouraged in that today," he said after the court granted a bail.

Many demonstrators gathered outside City of Westminster Magistrates' Court for the bail hearing today.

Author Yvonne Ridley said: "It is a victory for common sense. If he had been refused bail, it would have meant the court had become a political arena". .

Assange is accused of having unprotected sex with a woman, identified only as Miss A, when she insisted he use a condom. He is also accused of having unprotected sex with another woman, Miss W, while she was asleep.

Assange claims the charges are politically-motivated and designed to discredit him.

Earlier, his mother Christine Assange told Australian television station Channel 7 that she had spoken to her son in prison.

"I told him how people all over the world, in all sorts of countries, were standing up with placards and screaming out for his freedom and justice and he was very heartened by that. As a mother, I'm asking the world to stand up for my brave son," she said.

She also read a statement from him, which she had copied down when he spoke to her from Wandsworth Prison.

In it, he defended the actions of WikiLeaks, adding: "My convictions are unfaltering".

His lawyer said he had not been given any of his post - including legal letters - since being remanded in custody.

"He has absolutely no access to any electronic equipment, no access to the outside world, no access to outside media," Stephens said.

In recent weeks, WikiLeaks has published a series of US diplomatic cables revealing secret information on topics such as terrorism and international relations.

Assange was refused bail last week despite the offer of sureties from figures including film director Ken Loach, journalist John Pilger and Jemima Khan, ex-wife of Pakistan cricketer Imran Khan.

In his first appearance at court last week, District Judge Howard Riddle refused Assange bail on grounds that he could flee.

In recent weeks, WikiLeaks has published a series of US diplomatic cables revealing secret documents sent by US diplomats stationed around the world.

The scene outside the court was one of controlled bedlam as protesters and police mixed with large number of international media.

Some demonstrators wore masks representing comic book heroV, from V for Vendetta, and others used scarves to conceal their identity.

Many carried placards mocking the British and Swedish authorities as well as black and white images of Assange.

Others gave out leaflets campaigning for an end to the 'unfair' European Arrest warrant and outlining support for the free flow of information.

Earlier today, Assange backed the cyber attacks on Visa, Mastercard and Paypal from his prison cell, branding the companies 'instruments of US foreign policy'.

He gave a written statement to his mother, Christine, when she visited him in London where he is in custody fighting extradition to Sweden for alleged sex offences.