David Bagster, 54, was released from Kempsey jail on Tuesday after he successfully sought release in Wollongong District Court despite concerns he may interfere with trial witnesses.

He has been in custody for almost two years as he waited to defend allegations he unlawfully killed Valmai Jane Birch, 34, in March 2011.

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A jury was unable to reach a verdict following a three-week trial in February this year before the case was relisted to take place in August.

However it had to be postponed as COVID restrictions prevented trials from running during the pandemic.

Bagster was arrested in October 2019, eight years after the alleged manslaughter.

Ms Birch's hogtied body was found submerged in a wheelie bin inside her home on March 22, 2011.

The exact cause of death was unable to be determined due to the decomposition of Ms Birch's body.

In court on Tuesday, barrister Scott Fraser said due to the lockdown, his client's case had been postponed for a further eight months and was scheduled to take place on April 26, 2022.

Mr Fraser said "Bagster maintained his innocence" and by the time his new trial started he would have been in custody for two and a half years.

The court also heard COVID had entered Kempsey jail and Bagster's parents were elderly and sick.

Judge Haesler noted COVID in the jail was not his major concern as Bagster had been vaccinated and the virus was everywhere in the community.

He said the principal concern was Bagster interfering with witnesses as the prosecution had alleged in the trial that Bagster had the "capacity to threaten or harm" anyone who would give evidence.

"A number of witnesses whose evidence at trial demonstrated both a fear of and considerable antipathy towards Mr Bagster," Judge Haesler said.

"Some of their fears may be well-founded while some of them may fail to withstand the challenge under cross-examination.

"It is reasonable to assume that there is a risk to prosecution witnesses if Mr Bagster is free in the community."

"While one cannot rule out an irrational motive, there is no rational motive for him to interfere with a witness. On the contrary, it would damn him in the eyes of a future jury."

However Judge Haesler said the "delay of two and a half years [on remand] is unacceptable by any measure".

He took into account Bagster's criminal history which included firearms offences with the weapons not recovered.

Judge Haesler also noted Bagster faced a "very substantial term of imprisonment" if convicted of manslaughter.

In assessing the strength of the prosecution case, Judge Haesler said the Crown had a "motive and [Bagster had a] tendency to act in a certain way" but could not provide a cause of death and had circumstantial evidence about Bagster being inside the unit between March 8 and 22, 2011.

Bagster was granted strict conditional bail to live with his mother and father at their Kiama Heights home, not be absent from the home from 7am to 8pm unless in the company of his father and he must abide by a nighttime curfew.

Bagtser must report to police daily, have an acceptable person offer $2000 surety, and he must forfeit $1000. He can not consume illicit drugs or alcohol.

Notably, Bagster cannot directly or indirectly contact any prosecution witnesses, except for his parents, and is prohibited from travelling north of Albion Park or Albion Park Rail.

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