Bail bid against Eddie Obeid quashed

A Sydney Court has denied a bid to apply strict bail conditions on former NSW minister Eddie Obeid as he faces misconduct charges.

DPP solicitor Daniel Noll applied to Downing Centre Local court today to impose conditional bail on the ex-MP, including that he surrender his passport and not approach any witnesses.

The former Labor powerbroker is facing prosecution for alleged misconduct in public office over the extension of leases for family-owned businesses in Sydney's Circular Quay.

But in refusing the conditional bail application, the court ruled Obeid had strong ties to the community, while there was no evidence he posed a flight risk.

The matter returns to court on February 19.

Outside the court, Obeid said he welcomed the decision and was looking forward to the opportunity to clear his name.

"I have full confidence in our judicial system," he told journalists.

"We now have a level playing field."

Delivering his ruling, Magistrate Christopher O'Brien said the fear of Obeid either leaving the country or contacting witnesses was "tenuous".