Assange loses appeal but gains hope

WikiLeaks founder Julian Assange has failed to have a Swedish detention order overturned but is buoyed by the fact prosecutors have been criticised for allowing their sex assault investigation to stall.

The Court of Appeal in Stockholm on Thursday refused to set aside a detention order granted in late 2010 over allegations Assange molested and raped two women.

But in the process the court noted the investigation had ground to a halt.

"The failure of the prosecutors to examine alternative avenues is not in line with their obligation - in the interests of everyone concerned - to move the preliminary investigation forward," the court said.

Assange's legal team believes that warning means prosecutor Marianne Ny will now have to travel to London to interview Assange in Ecuador's embassy.

The 43-year-old has been holed up there since August 2012 when he was granted political asylum by the South Americans.

"The pressure on the prosecutor to do something has increased," Assange's Swedish lawyer Per Samuelsson told AAP.

"The Court of Appeal, so to speak, warns the prosecutor 'If you don't go now we will cancel the custody decision the next time'.

"That's how you can interpret it."

Mr Samuelsson said the court was "cowardly" not to cancel the detention order outright but hopes the Supreme Court will act in due course.

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Assange loses appeal but gains hope