The rape conviction of Sydney man Luke Lazarus is set to be overturned and a retrial ordered after the state's highest court upheld his claim that the judge in his trial misdirected the jury.

Lazarus had spent 11 months in jail over the rape behind a Sydney nightclub but was released on Friday afternoon after the NSW Court of Criminal Appeal granted him bail with a $50,000 surety ahead of a final judgment in the coming weeks.

Appearing from jail via audio visual link, the 23-year-old broke down as the Chief Judge at Common Law, Justice Clifton Hoeben delivered the news following a 90-minute hearing.

"The court is in a position to say that it's satisfied at this stage that ground two [of the appeal] has been made out," Justice Hoeben said.