The alleged rape investigation involving WikiLeaks founder Julian Assange, who is now jailed in Britain, has been discontinued, a Swedish prosecutor has said.

Deputy Chief Prosecutor Eva-Marie Persson spoke on Tuesday as she gave an update on the Swedish case.

Assange has been in custody since being removed from the Ecuadorian embassy in London where he had initially been granted asylum.

He had been wanted in Sweden over the rape claims but is also sought by US authorities over his WikiLeaks activities.