IS 'Sydney recruit' wins US bail

A 20-year-old former Sydney resident accused of attempting to join terror group Islamic State has won a legal battle in the US to be freed on bail.

Asher Khan was arrested in Houston, Texas, in May after US authorities monitored his Facebook and other communications.

He was charged with conspiring to provide material support to Islamic State and prosecutors fought to keep Khan behind bars before his trial.

A US District Court judge granted his release in June, prosecutors appealed, but two of the three judges in the US Court of Appeal for the Fifth Circuit have now agreed he should be freed.

Khan, who grew up in Texas, moved to Sydney in 2013 to live with relatives.

In January 2014, he allegedly reached out to a Turkish-based foreign terrorist fighter facilitator.

Khan complained he didn't "like living in the West anymore", was sad because he was in Australia "comfortably while (his) brothers" were in "so much hardship" and confided he wanted to die a martyr, US authorities allege.

On February 24, 2014, Khan flew from Australia to Turkey on Malaysia Airlines, but authorities said Khan's parents tricked him into returning to Houston by claiming his mother was in intensive care.

Khan's trial was originally set for August 4 in Houston, but his lawyers and prosecutors asked for it to be scheduled after November 16 to review evidence and complete any plea discussions.

Khan was released on $US150,000 ($A203,300) bail, placed in the custody of his parents and is restricted to their house except for lawyer, religious or school visits.

He has GPS monitoring and is banned from using the internet.

If convicted, Khan faces up to 15 years in US federal prison.