John Downey, who was arrested earlier this week in relation to an extradition warrant for offences relating to a 1972 bombing in Enniskillen in which two members of the British Army were killed, has been granted bail at the High Court in Dublin.

Mr Downey, 66, appeared in court on Tuesday and was remanded in custody until today's bail hearing.

Bail was granted by Ms Justice Aileen Donnelly subject to the approval of financial guarantees.

Mr Downey is expected to be bailed, once the bail guarantees have been received. It is understood he will be released in the next 24 hours. 

A friend agreed to provide surety of €30,000 while Mr Downey is to lodge his own bond of €5,000.

He is wanted by the PSNI in Northern Ireland for questioning in connection with two counts of murder and one count of aiding and abetting an explosion.

The two Ulster Defence Regiment soldiers died when an IRA bomb exploded in a car they were checking in Enniskillen, Co Fermanagh, on 25 August 1972.

Mr Downey was arrested on Monday at his home in Ards, Creeslough, Co Donegal, under a European arrest warrant.

The full extradition application hearing will be held on 23 November.

Mr Downey's trial on charges linked to a 1982 bombing in Hyde Park, London, in which four soldiers were killed, collapsed in 2014.

He had been mistakenly sent a UK government letter saying he was not wanted for questioning by the police when there was actually an outstanding warrant against him.

The trial judge ruled that Mr Downey's arrest at Gatwick Airport, as he transited the UK on the way to a holiday, represented an abuse of process and he put a stay on any future prosecution in relation to the Hyde Park case.

Mr Downey has denied any involvement in the Hyde Park attack.