Two Bohemia Interactive developers arrested on suspicion of spying on a Greek military base have been released on bail.

Ivan Buchta, project lead on war simulator Arma 3, and Martin Pezlar, the game's level designer, were granted bail at around 8:30am local time this morning and, according to local reports, are free to return home to the Czech Republic.

"As a result of repeated dealings, today the Greek Prime Minister Antonis Samaras informed the Czech Prime Minister Petr Nečas over the telephone that the two Czech arrested by Greek police because of supposed photography of military objects on the island of Lemnos have been released," said Michal Schuster, a government spokesperson for the Czech Republich. "Petr Nečas expressed appreciation for the efforts of PM Antonis Samaras and thanked him."

Both men were arrested on the island of Lemnos in September 2012 after being suspected of taking photographs and video footage of a Greek military installation - something the pair have denied.

Bohemia Interactive later claimed the pair were arrested "during their holiday trip" and that it had "never instructed anybody to violate the laws of any country".

The men, who described their arrest as an "absurd misunderstanding", will have to return to Greece to face charges at an unspecified date. If convicted, they could face a 20-year prison sentence.