Carles Puigdemont was arrested by German police last month

A German court has agreed to release former Catalan President Carles Puigdemont on bail.

The separatist leader is wanted on Spain on charges of corruption, rebellion and sedition for his part in the region’s push for independence from Spain.

The corruption charge is based on alleged misuse of public funds arising from his role in the disputed Catalan independence referendum.

He has been in self-imposed exile from Spain since late last year – and was arrested on foot of a European Arrest Warrant by German authorities at the Danish border last month.

This afternoon, the German court said his extradition was possible on the basis of the corruption charges – but not on the more serious charge of rebellion.

Germany cannot extradite someone on the basis of rebellion as it is not a criminal offence in the country.

The closest offence in German law is high treason - however the accused person’s actions would have to include a violent element for the charge to be applicable.

Extradition proceedings on the corruption charges will continue.

In the mean-time, the court set bail at €75,000.

The rebellion charge would carry a maximum sentence of 30 years' imprisonment, while sedition carries a 15-year penalty.