Ecuador has granted political asylum to Wikileaks founder Julian Assange who has taken refuge in its London embassy since June.

The decision to grant asylum was in the Ecuadorian capital Quito.

It follows a diplomatic stand-off between Ecuador and the United Kingdom.

The Ecuadorian government believes that Mr. Assange could become a victim of political persecution if he is extradited to Sweden to face sexual assault charges.

The Wikileaks founder denies the allegations.

He claims he has been set up and will be extradited to the United States for leaking US diplomatic cables.

However lawyers say that despite the asylum he has no way of leaving his refuge in the London embassy without being arrested.

He would still have to find a way of getting from central London to South America without passing through British territory.

Granting him political asylum the Ecuadorian Foreign Minister Ricardo Patiño said Assange could ultimately face the death penalty in the US.