Court documents show Sri Lankan national Mohamed Kamer Nilar Nizamdeen, 25, was granted bail in Sydney Central Local Court and released on Friday after spending four weeks behind bars accused of creating a document in connection with preparations of a terrorism act.

Police had earlier said a worker at the University of NSW tipped them off after allegedly finding a notebook that named several "symbolic" locations and individuals as "potential targets".

Police also alleged he was affiliated with Islamic State but did not charge him as such.

Supporters and family of Nizamdeen rallied in the Sri Lankan capital Colombo earlier this month, carrying posters saying the university staff member had been framed.

"Kamer is innocent," one placard read.

His bail conditions include that he report to police twice a week, live at an address in St Ives and not contact any UNSW staff or prosecution witnesses.

Nizamdeen was arrested at the university's Kensington campus on August 30 before his Zetland unit was raided and electronic devices were seized.

The business systems analyst was not previously known to police and does not have any criminal history in Australia.

His matter is due before Central Local Court again on October 24.

Australian Associated Press