"I come to the conclusion that the accused has made a case to be released on bail," said Chief Magistrate Desmond Nair, eliciting a celebratory cry of "Yes!" from the courtroom.
Pistorius remained quiet and reserved after the announcement and did not appear to celebrate. His family hugged quietly.
Nair said the former chief investigator in the case, Hilton Botha, had made "several errors and concessions" during his testimony during the bail hearing, and said prosecutors had failed to prove that Pistorius was a flight risk or had a propensity toward violence.
Botha has since been removed from the case after prosecutors reinstated attempted murder charges against him in a 2011 incident unrelated to Pistorius.
While recounting a litany of "improbabilities" in Pistorius' account of mistaking Steenkamp for an intruder, Nair said defense attorneys had met the threshold for proving the "exceptional circumstances" required by South African law for the release of a suspect charged with premeditated murder.
Pistorius will be released after posting bail of 1 million rand (about $114,000) by March 1, and 10% of it is due Friday. He may not return to the home where the shooting happened, Nair ruled.
He must give up his passport, can't go near an airport and must report to a police station every Monday and Friday, Nair said.
Pistorius is accused of premeditated murder in the February 14 shooting death of Reeva Steenkamp, 29. Authorities and Pistorius' team agree that he killed Steenkamp, but Pistorius says he mistook her for an intruder.
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