Strauss-Kahn to be freed on bail

A judge has agreed to free former International Monetary Fund leader Dominique Strauss-Kahn from a New York City jail on the condition that he remain under house arrest.

The judge set bail at $1m and approved an elaborate arrangement under which the 62-year-old diplomat and banker would be confined to a private apartment in Manhattan and monitored by armed guards.

Strauss-Kahn will also have to take out a $5m insurance bond.

Prosecutors had said he should remain behind bars.

Strauss-Kahn resigned his IMF post yesterday.