TAIPEI - A TAIWAN court on Thursday ruled it would stick to its previous decision to release former president Chen Shui-bian without bail pending trial on corruption charges, his lawyer said.

Chen, 58, is the island's first former leader to face criminal prosecution.

He is charged with corruption and money laundering, with prosecutors alleging he embezzled public funds and took bribes.

Three judges at the Taipei District Court made Thursday's decision following a five-hour hearing during which Chen and his lawyers battled prosecutors' attempts to get him back into custody for further investigation.

'Thank you for your concerns. I'm sorry, it is already very late,' a smiling Chen told reporters in the courthouse lobby before being whisked away by bodyguards.

His lawyer, Cheng Wen-lung, said: 'The court has decided to maintain its previous ruling... It's not easy for the judges. After all, they have to undergo huge pressure from the public.'

The lawyer said the ruling was 'big progress in Taiwan's judicial system because this represents another effort to safeguard human rights while striving to uncover truth'.

The court requires the former president to reappear for future trial whenever needed and his movements are also restricted, according to the lawyer, meaning he is not allowed to leave Taiwan.

The Taipei District Court released Chen on Saturday after he had spent more than a month in custody. Prosecutors appealed the decision, saying Chen could flee Taiwan, collude with other suspects and destroy evidence.

The High Court on Wednesday had ordered the District Court to reconsider its decision.

'The prosecutors would have needed more firm evidence against the defendant if they want him to be detained,' Formosa Television cited court papers as saying.

Chen, who rose to power eight years ago pledging to fight corruption, faces life in prison if convicted on all counts.

Thirteen others are charged in connection with the case including Chen's wife, son and daughter-in-law, in a long-running saga which has captivated Taiwan.

Prosecutors say Chen and his wife Wu Shu-chen made illegal gains of some $45 million (S$64.8 million) from embezzling public funds and taking bribes from local businessmen.

The former president, who left office in May after serving the maximum two four-year terms, and his relatives have insisted they are innocent.

Chen has repeatedly said the charges against him are politically motivated, accusing the China-friendly government of his successor, President Ma Ying-jeou, of leading a witch-hunt. -- AFP