Dominique Strauss-Kahn released from house arrest without bail

Former IMF chief Dominique Strauss-Kahn was released from house arrest on Friday by a New York court, as the sexual assault case against him appeared to be on the brink of dismissal.

Prosecutors acknowledged there were credibility issues over the hotel chambermaid who brought the sexual assault allegations against Strauss-Kahn. At a brief court hearing Friday, prosecutors did not oppose his release, the New York Times reports.

Strauss-Kahn, 62, was subsequently released from house arrest by the judge on his own recognizance, which according to the BBC explains means he must simply promise to appear at future court hearings.

His $1 million cash bond has been returned and he will not have to wear an electronic tag, but prosecutors will retain his passport. 

The charges have not been dropped and the next court hearing is set for July 18.

Recent GlobalPost Breaking News on DSK:

Brother of maid in DSK case speaks out

Strauss-Kahn assault case nears collapse

The lawyer for the Guinean woman who accused Strauss-Kahn of assaulting her at his hotel room and her workplace told the court Friday that although she made some mistakes, that did not mean she was not a rape victim, the Guardian reports.

Kenneth Thompson said: "The victim herself is the one who came forward voluntarily with the information about her asylum application. She told me she wanted to tell the DA the truth about how she came to this country."

Thompson also suggested that stories leaked to the press about the woman were designed to discredit her, but added that she was determined to come before the press and speak for herself.

Prosecutors say they have physical evidence showing that Strauss-Kahn had sexual contact with the woman, but they were now understood to have qualms over the woman's credibility.

Strauss-Kahn was considered a potential challenger for the Socialist Party to Nicolas Sarkozy in next year's French presidential election.

News of the potential collapse of the case against him has been welcomed by members of the French party. Socialist Party deputy Jean-Marie Le Guen said Strauss-Kahn could still be a "key player" in the 2012 campaign, according to CBS News, although the candidate deadline for primaries is July 13. The primaries are due to be held in October.

Strauss-Kahn resigned his post as the director of the IMF after the assault charges were brought against him and he was subsequently replaced by another French politician – France's Finance Minister Christine Lagarde.