A New South Wales University student accused of plotting to assassinate Australian politicians has been released on bail, after an expert found the sole piece of evidence couldn't be connected to him.

Mohamed Kamer Nizamdeen, 25, was arrested in August after a colleague found a notebook allegedly containing details of plans to kill Malcolm Turnbull and his former deputy Julie Bishop.

Mr Nizamdeen has spent four weeks in jail facing a terror charge - his family and supporters have maintained he is innocent.

"The prosecution has become aware that an expert handwriting examiner found an inconclusive result on the relevant entries contained in the notebook," prosecutor Christina Choi told the Central Local Court in Sydney.

"Without a conclusive expert opinion suggesting the defendant was the relevant author, evidence for the charge has been significantly weakened.

The prosecution concedes these are exceptional circumstances."

Mr Nizamdeen was charged with collecting or making documents likely to facilitate terrorist acts on August 31.

Last week, hundreds of people gathered in his hometown in Sri Lanka to protest his treatment in prison.

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Whatsapp Supporters of Mohamed, a Sri Lankan national, held a vigil in Sri Lanka's capital city.

The alleged list of targets also included the former speaker Bronwyn Bishop, the Sydney Opera House, major train stations and police stations across the Harbour City.

Mr Nizamdeen's lawyer said police had conducted eight hours of interviews with the student which also did not uncover anything against the suspect.

"Let's be clear, Mr Nizamdeen today was granted bail because the case against him is extremely weak, almost non-existent," his lawyer Moustafa Kheir said.

We'll be continuing to fight until all charges are dropped and he's completely exonerated.

Mr Kheir said his client wanted to "pass on some appreciation" for the support he's been receiving.

"He especially wanted to pass on a thank you to his colleagues at the University of New South Wales."

Detectives allege the Sri Lankan national was acting on his own, and despite police telling a media conference he appeared to be an Islamic State affiliate, they had not charged him with being a member of a terrorist organisation.

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The court heard other material belonging to Mr Nizamdeen - like his computer, mobile, and other documents - did not show he had any extremist ideology.

"No extremist ideology material has been located on devices found in possession of Mr Nizamdeen," Ms Choi said.

The prosecutor said the NSW Police Commissioner had also submitted a confidential affidavit to verify these circumstances.

Police interviews yielded no evidence, court hears

The IT business analyst's lawyer said police had conducted eight hours of interviews with Mr Nizamdeen.

"He's been quite frank with police too," Mr Kheir said.

The case against my client is substantially weak.

Mr Nizamdeen's been living in Australia on a student visa which was cancelled after his arrest.

The court heard arrangements are being made to get him a bridging visa so he won't be sent to immigration detention

In the meantime, the court ruled Mr Nizamdeen can't leave the country or get a passport and he'll have to live with his uncle in northern Sydney.

He's due to face court again in October.