An Australian man facing charges in East Timor claims he has been framed by local authorities.

Julian King, a freelance journalist and activist from Darwin, is charged with possessing ammunition and illegal documents and is still awaiting trial in Dili.

East Timorese police allege they found a box of bullets and illegal documents during a raid on Mr King's home last month. Mr King says the Court of Appeal today found the documents were not illegal.

He says he has been framed because of his investigations into the East Timorese Government. "I don't have any bullets, I don't have any weapons, I'm here as a researcher and a part-time journalist, cameraman," he said. "I believe this is an attempt to get rid of me because I'm researching Timor Gap and allegations of corruption."

Mr King says the Court of Appeal ordered prosecutors to return his passport and refused their request to jail him pending the trial.