Wikileaks founder Julian Assange has been granted political asylum by the Ecuadorian government.

Assange has been stuck in the embassy of Ecuador in London, since he took refuge there two months ago, to avoid being extradited to Sweden, where he faces trial for sexual assault.

A foreign office spokesperson warned on Wednesday that they may be forced to lift diplomatic immunity on the premises and enter the embassy to arrest Assange.

The foreign minister Ricardo Patiño announced the decision to applause at a press conference in Quito.

“We believe that his fears are legitimate and there are the threats that he could face political persecution.

“We trust that that the UK will offer as soon as possible the guarantee for the safe passage of asylum for Mr Assange and they will respect those international agreements they have signed in the past.”

Assange has thanked staff at the embassy and hailed the decision.

"It is a significant victory for myself, and my people. Things will probably get more stressful now," he said.

The Foreign and Commonwealth Office expressed disappointment at the decision and said they are obliged to arrest and extradite Julian Assange.

“We are disappointed by the statement from Ecuador’s Foreign Minister that Ecuador has offered political asylum to Julian Assange," it said in a statement.

"Under our law, with Mr Assange having exhausted all options of appeal, the British authorities are under a binding obligation to extradite him to Sweden. We shall carry out that obligation.

"The Ecuadorian Government's decision this afternoon does not change that. We remain committed to a negotiated solution that allows us to carry out our obligations under the Extradition Act.”