WikiLeaks founder Julian Assange has been granted political asylum by Ecuador after taking refuge in the country's embassy in London two months ago.

The announcement will increase tensions between the UK and the South American country, which has been warned the situation could have "serious implications" for diplomatic relations.

Mr Assange sought sanctuary in the embassy in Knightsbridge in an effort to avoid deportation to Sweden, where he faces sexual assault charges.

The Foreign Office has said the decision on Mr Assange's application for political asylum would not affect the UK's legal obligation to extradite him to Sweden.

Ecuadorian ministers have accused the UK of threatening to "attack" the embassy to seize Mr Assange after it emerged that a 1987 law could allow the revocation of a building's diplomatic status if the foreign power occupying it "ceases to use land for the purposes of its mission or exclusively for the purposes of a consular post".

Under international law, diplomatic posts are considered the territory of the foreign nation.