Julian Assange has accused the Prime Minister of libel after David Cameron said the WikiLeaks founder was wanted for trial.

Mr Cameron told the Commons that Mr Assange should leave the Ecuadorean Embassy in London and "face the arrest warrant against him".

Mr Assange issued a statement pointing out he had never been charged. He has been living inside the embassy for over three years to avoid extradition to Sweden where he is wanted for questioning over a sex allegation, which he denies.

He believes that if he goes to Sweden he will be taken to the United States for questioning about the activities of WikiLeaks.

Mr Cameron said at Prime Minister's Question Time that Mr Assange was being asked to stand trial in Sweden, adding that he should leave the embassy and bring the "sorry saga " to an end.

Mr Assange said in a statement: "I see that the Prime Minister, barricading himself in the legal impunity of Parliament has decided to libel me. Let him step outside and try. Not only am I not 'wanted for trial', I haven't been charged.

"I have already previously been found to be completely innocent by the Swedish legal system and the woman herself says, in the police file no less, that the police made it up and 'railroaded' her. Even the Swedish prosecution and courts state that the 'proceedings' are a 'preliminary investigation'.

"Of course it is absurd that someone could be extradited under such circumstances, which is why the UK Parliament banned the practice in 2014."