PERTH man Dominic Bird has been granted bail in Malaysia pending the outcome of an appeal against his acquittal on drug trafficking charges, but still faces another lengthy court battle to escape the death penalty.
Mr Bird, accused of supplying 167 grams of methamphetamine to an undercover police officer, was acquitted on September 4 but re-arrested days later, minutes before his flight to Perth was to depart, after prosecutors launched an 11th hour appeal.
The 33-year-old's lawyer Muhammed Shafee Abdullah had argued that the re-arrest was unconstitutional on the grounds that his client had been declared by the Kuala Lumpur High Court to be a free man, and should be allowed to return to Australia.
But Court of Appeal Justice Azahar Mohamed on Tuesday ruled that the arrest was lawful and that the appeal, for which prosecutors are yet to provide any details, was simply a continuation of a trial.
"Consequently, criminal proceedings against the respondent are revived," Justice Azahar said.
"The right to liberty is not absolute," he said.
Still, Justice Azahar also ordered that Mr Bird, having already spent more than 18 months behind bars, should be granted bail pending the outcome of the appeal, dismissing concerns from prosecutors that the Perth man was likely to abscond.
Mr Bird must first come up with 50,000 Malaysian ringgit ($A16,000) in order to post bail, and will be required to report to police once a week.
His passport is already in the hands of Malaysian authorities.
Mr Abdullah said he would push for the appeal to be expedited.
"We would like to have this appeal within a month from today," Mr Abdullah said outside the court.
However, prosecutor Ahmad Bache told AAP on Tuesday morning that he expected the appeal would not be heard until next year at the earliest, and that it would take several months more to be concluded.
Prosecutors are yet to detail the grounds on which they will appeal the case.
Mr Bird was initially arrested in March last year at a cafe near his apartment in Kuala Lumpur after allegedly supplying an undercover police officer with 167 grams of methamphetamine.
Possession of more than 50 grams of the drug carries a mandatory death penalty in Malaysia.
The prosecution's case subsequently collapsed amid allegations of corruption, including drug trafficking, against their star witness - drug squad detective Luther Nurjib - who was also responsible for Mr Bird's arrest.
Mr Bird has always maintained he was set-up by Inspector Nurjib, who last month was found guilty of contempt of court and fined RM2000 ($A665), after it emerged he had threatened and attempted to bribe a witness in the Bird case.
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