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LONDON (Reuters) - A French businessman suspected by investigators of funnelling money from former Libyan leader Muammar Gaddafi to finance Nicolas Sarkozy's successful 2007 presidential campaign was granted bail when he appeared at a London court on Wednesday.

Alexandre Djouhri, 58, was arrested at London's Heathrow Airport on Sunday on an international arrest warrant issued by France.

He appeared at Westminster Magistrates Court to apply for bail which was granted on condition that he pays security of one million pounds ($1.35 million), surrenders his passport and reports to police daily.

He opposed extradition to France and a full extradition hearing will start on April 17.

Sarkozy, who served as president from 2007 to 2012, has always denied receiving any illicit campaign funding and has dismissed the Libyan allegations as "grotesque".

(Reporting by Michael Holden and Estelle Shirbon; editing by Stephen Addison)

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Reuters