Assange, 46, fled to the embassy in the wealthy Knightsbridge district of the British capital in 2012 after skipping bail to avoid being sent to Sweden to face an allegation of rape, which he denied.
The Australian-born Assange had feared Sweden would hand him over to the United States to face prosecution over WikiLeaks' publication of a large trove of classified military and diplomatic documents - one of the largest information leaks in U.S. history.
In May last year, Swedish prosecutors dropped their investigation into the allegation and withdrew their European Arrest Warrant (EAW). But British police have insisted Assange would still be arrested for breaching bail conditions should he leave the embassy.
On Friday, Assange's lawyer, Mark Summers, told Westminster Magistrates' Court that the withdrawal of the EAW meant the British bail arrest warrant could no longer apply.