Salim Mehajer has been granted bail after two months behind bars, but the embattled former deputy mayor of Auburn is facing a fresh charge of perverting the course of justice for allegedly lying to Burwood Local Court.

The Supreme Court heard on Thursday that Mehajer was at the centre of "a snowballing of idiocy" but Justice Desmond Fagan said he ought to be released on bail pending two criminal trials in the District Court, which are unlikely to be heard until 2019.

Justice Fagan said Mehajer could end up spending longer in Silverwater prison awaiting trial than any potential jail sentence.

Mehajer, 31, has been in prison since January 23 after he was charged with perverting the course of justice and conspiring to cheat or defraud for allegedly staging a car crash on October 16 to avoid appearing in the Downing Centre Local Court to stand trial for assaulting a taxi driver.