Mr Assange had spent the past eight nights in prison.
He will now stay at a manor home on the Norfolk-Suffolk border owned by Vaughan Smith, a Wikileaks-supporting journalist and owner of the Frontline Club in London.
Mr Assanges solicitor, Mark Stephens, said after the court appearance the bail appeal was part of a continuing vendetta by the Swedes.
Wearing a dark suit and opened-necked shirt, he was lit up by scores of camera flashes capturing his first moments of freedom.
Behind the rows of journalists, photographers and camera crews supporters of Mr Assange chanted, Julian, Julian, Julian, out, out out! clearly delighted with the news.
It had appeared touch and go whether he would be released on Thursday, with rumours circulating as to how late the court would be prepared to stay open in order to finalise the paperwork for his freedom.
Not everyone at the court was interested in the Wikileaks founder though. One woman spent the entire day parading around a placard complaining about a parking fine she had received in north London.
But the question of who decided to appeal against the granting of bail remains unclear.
A CPS spokesman said on Thursday: The Crown Prosecution Service acts as agent for the Swedish government in the Assange case. The Swedish Director of Prosecutions this morning confirmed that she fully supported the appeal.
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