Hakan Ayik, 32, was freed on bail of 100,000 Turkish lira (48,500 euros/64,000 dollars).
His passport was confiscated and he was prohibited from leaving the Turkish Republic of Northern Cyprus, which is recognised only by Turkey, until the end of his trial for "illegal possession of medicines and pharmaceutical products."
Ayik was arrested on December 20 at a hotel in the port of Kyrenia on the eastern Mediterranean island.
Media reports said police seized equipment used to make narcotics and steroids, a laptop and eight cell phones in his hotel room.
Ayik is wanted in Australia in connection with a major drug trafficking operation. He fled the country in August and is the subject of an international arrest warrant.
A report on the website of Australia's Sunday Herald newspaper called him "one of Australia's most wanted men."
Ayik "is wanted in Sydney in relation to the importation of 175 kilogrammes (385 pounds) of heroin worth more than 50 million dollars, which arrived at Sydney's Port Botany from Bangkok in late July," the report said.
NICOSIA, Dec 26, 2010 (AFP)