South African authorities want Shrien Dewani, 31, to return to Cape Town, where his wife Anni, 28, was killed in November.
The couple were being driven through a township when their taxi was hijacked.
Mr Dewani, a care home owner from Bristol, was granted bail by Belmarsh Magistrates' Court.
South African prosecutors say Mr Dewani, who was thrown out of the taxi while his wife was driven off and killed, had arranged the murder.
Taxi driver Zola Tongo, who has admitted his part in the crime, claimed in a plea agreement with prosecutors that Mr Dewani ordered the car-jacking.
Mr Dewani, who denies any wrongdoing, is said to be suffering from severe post-traumatic stress disorder and has been detained at a Bristol clinic.
In extradition proceedings that began at Belmarsh Magistrates' Court in south east London in May, his lawyers argued that he may not be safe if held in a South African jail.
Mr Dewani's supporters have also questioned whether he would receive a fair trial in the country.
The hearing in May was adjourned while a psychiatric report on his health was completed.
The court is expected to hear another four days of evidence this week before district judge Howard Riddle decides whether Dewani should be sent to South Africa to face trial.
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