MADRID, Spain (BBC) -- A man regarded as a key figure in possible negotiations between the Spanish government and armed Basque separatists has been freed from jail.

Arnaldo Otegi, leader of the banned Basque party Batasuna, was released with two others after they posted more than 650,000 euros (£450,000) in bail.

Otegi was detained last month on charges of inciting violence during a recent strike in the Basque country. His release comes two weeks after armed group ETA began a permanent ceasefire. Otegi was arrested on 29 March by Spain's highest criminal court as an alleged instigator of violence during a general strike called in protest at the death of two Batasuna members in jail. Relaxed policy

The Spanish government initially said it would press for Otegi to be remanded in custody until his trial begins. But the High Court judge, Fernando Grande-Marlaska, set bail after the prosecutors raised no objection.

Otegi's Batasuna party is considered the political wing of Eta, which waged a violent 38-year campaign for independence for the Basque region, resulting in the loss of some 800 lives.

Analysts say Otegi is likely to be a key figure in any future peace negotiations between the group and the Spanish government.

The decision to allow bail was seen as a sign that the government had relaxed its detention policy since ETA declared its ceasefire.