Alleged internet pirate Kim Dotcom has welcomed the relaxing of his bail conditions and says it will improve his ability to fight extradition to the United States.

On Tuesday, an Auckland district court judge ruled Dotcom’s flight risk was minimal and had been overstated.

The German national and Megaupload founder is wanted in the United States for alleged copyright infringement worth hundreds of millions of dollars.

Dotcom can now return to his rented Auckland mansion.

Dotcom and his family were forced to move out of the house after police raids at the property in January.

He told Radio New Zealand his family feels more welcome now than before the January raids.

"The family will be very happy to move back," he said.