A spokeswoman for the Schleswig Holstein court said: "The court decided this morning that an extradition due to the accusation of misuse of public funds is permissible".
The current Catalan regional premier, Quim Torra, a hard-line supporter of Catalan independence, was quick to voice his reaction to the news via Twitter.
A German court chose to allow the extradition of Catalan separatist leaderCarles Puigdemont to Spain, on a charge of misuse of public funds, a blow to the Spanish authorities' bid to bring him back to stand trial on the more serious charge of rebellion.
The court has not made a decision to impose any precautionary measures on Puigdemont, meaning that he remains a free man.
The court has not chose to impose any precautionary measures on Puigdemont, meaning that he remains a free man. "Breach of the public peace does not apply because Carles Puigdemont was only involved in carrying out the [independence] referendum", the court said in a statement, adding that he was not a "spiritual leader" of violence. In Spain, he could face imprisonment.
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Also present was St Andrews professor Clara Ponsati, who is fighting extradition on charges of "violent rebellion" after helping organise last year's Catalan referendum.
In its decision in the case of Carles Puigdemont, the Schleswig-Holstein state court said the former Catalan leader could be extradited on embezzlement charges, but not rebellion. She said the Thursday decision can be appealed.
Puigdemont is one of 13 separatist leaders accused of rebellion, four of whom are in self-exile in various European countries.
Puigdemont's press spokesman, Joan Maria Pique, issued a short statement saying that without the rebellion charge the "main Spanish accusation falls".
This is a breaking news story.