The prosecution said it did not oppose his release because a new video of the incident had come to light since Abdallah was initially refused bail.

"It somewhat changes the narrative from the shortened clip the media had," a lawyer representing the Director of Public Prosecutions said.

The extended video, published by the Daily Telegraph on Wednesday, appears to show Mr Yaghi throwing the first punch at an onrushing Abdallah before hitting the ground and being set upon by the younger man.

The original video circulated online only panned to the affray after Mr Yaghi was already on the deck.

The bail conditions require Abdallah to remain in his house at all times, unless accompanied by his mother or his wife, who is six months' pregnant.

Justice Mark Ierace said the conditions effectively confine the amateur boxer to "house arrest".

As Abdallah has no prior criminal convictions, other than one traffic matter, Justice Ierace said the "alleged behaviour would appear to be quite out of character".

Mr Yaghi, 45, had reconstructive surgery in a Sydney hospital after the incident left his jaw broken in three places and knocked out three teeth.

Abdallah was a suspended player for Greenacre Eagles, which withdrew from the rest of the men's premier league winter season and promised to help the local association impose appropriate sanctions.

NSW Sports Minister Steve Kamper, a past president of Sydney Olympic Football Club, said he had sought assurances from governing body Football NSW that the strongest possible action would be taken over the alleged attack on Mr Yaghi.

"This is one of the worst attacks I've ever seen at any sporting event at any level," he told AAP days after the incident.

"This was a disgusting and cowardly attack. It goes without saying that this kind of behaviour is totally unacceptable."

Abdallah next faces court on June 28.