Spain's Supreme Court said on Thursday it had decided to decline the extradition of former Catalan regional leader Carles Puigdemont from Germany on the charge of misuse of public funds linked to his organisation of a banned referendum on independence.

A German court ruled one week ago that Puigdemont could be extradited for alleged misuse of public funds but it rejected a request to send him back to answer a more serious charge of rebellion.

Puigdemont fled to Brussels after Spanish courts issued a warrant for his arrest over his role in Catalonia's declaration of independence last October. This was illegal under Spain's constitution, according to Spanish law.

A source in Puigdemont's legal team said the former Catalan leader would appeal a decision to extradite him from Germany on any charge. If he were extradited for misuse of funds, Puigdemont could not be tried for rebellion in Spain.

The German court decision had come after Spain's new Socialist Prime Minister Pedro Sanchez met with the new pro-independence Catalan leader Quim Torra a week ago in a move aimed at easing tensions between Barcelona and Madrid.

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