Exposto released on bail in Malaysia

A 54-year-old Sydney mother who avoided the death penalty in Malaysia over drug trafficking charges has been released on bail.

Maria Elvira Pinto Exposto was found not guilty last year of attempting to import more than a kilogram of crystal methamphetamine into Kuala Lumpur en route from Shanghai to Melbourne in 2014.

She was acquitted on December 27 after the judge found she was scammed by her online boyfriend and was unaware she was carrying the drugs.

But she remained in custody after prosecutors launched an appeal.

The mother of four was granted bail in a Malaysian court on Thursday, the ABC reports.

Her lawyer says her passport will be surrendered and she will have to report to police each week as a condition of the 30 thousand ringgit ($A9,552) bail agreement.

Exposto's case will return to court in February so a date can be set for an appeal hearing.

The 54-year-old would have faced the death penalty if she'd been found guilty.