Accused war criminal Charles Zentai has been granted bail in the Federal Court in Perth.

The 88-year-old has spent almost two months in a Perth jail awaiting extradition to Hungary where he is accused of killing a Jewish teenager in 1944.

Home Affairs Minister Brendan O'Connor approved the extradition in October but Zentai's lawyer has appealed against that.

Federal Court Justice Neil McKerracher today granted Zentai bail after the Commonwealth did not oppose the application.

Justice McKerracher said Zentai was a low flight risk.

Zentai's son, Ernie Steiner, says he is pleased his father will be home for Christmas.

"Our dad is the head of the family and my mother passed away in 2002, so really my dad has been with us every Christmas," he said.

"Christmas without him would have just been something terrible I think and for him to be alone in prison would have been even worse."

abc.net.au