A Swedish appeals court is set to rule on Friday whether Wikileaks founder Julian Assange should be extradited to Sweden over rape allegations.

The decision on whether or not overturn a European arrest warrant could make Assange, 43, one step closer to leaving the Ecuadorian embassy, where he has sought refuge for the past four years.

Assange filed the appeal request after a UN panel said in February that his presence at the Ecuadorian embassy amounted to arbitrary detention.

The panel said Assange should be allowed to leave and should also be awarded compensation.

Even if Sweden drops the investigation, Assange is likely to be arrested for breaching bail conditions in Britain.

In 2010, Wikileaks published more than 250,000 classified US military and diplomatic documents in one of the largest data leaks in US history.

The leaks included a video showing unarmed Iraqis being shot down by American helicopters.

That same year, two women who met Assange while he was in Sweden speaking at a conference filed accusations of rape and molestation against him.

Interpol issued a Red Notice for Assange's arrest on November 20, and a week later, he gave himself up and appeared before a judge in Westminster.

In December, Assange was granted bail, but in June 2012, he fled bail and applied for asylum in Ecuador through the country's embassy in Knightsbridge.