UPDATE 10.52 PM
The British Foreign Office has issued several statements via Twitter indicating that Ecuador's announcement does not change its intention to extradite Julian Assange.
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UPDATE: 10.40 PM
The Ecuadorian government has announced it will grant diplomatic asylum to Wikileaks founder Julian Assange.
UPDATE: 10.25 PM
The Foreign Minister reiterates its position on supporting political asylum to those who ask for it.
"Our constitution defines clearly the right to asylum and based on that, these rights are fully accepted and recognised in Ecuador."
A British Foreign Office spokesman said: "The UK has a legal obligation to extradite Mr Assange to Sweden to face questions over allegations of sexual offences and we remain determined to fulfil this process.
"Throughout this process we have drawn Ecuador's attention to the relevant provisions of our law, for example the extensive human rights safeguards in our extradition proceedings and also the legal status of diplomatic premises in the UK.
"We are still committed to reaching a mutually acceptable solution."
#Assange: We have consistently made our position clear in our discussions with the government of#Ecuador. — Foreign Office (FCO) (@foreignoffice) August 16, 2012
WIKILEAKS SLAMS UK 'THREATS'
Britain's threat to storm Ecuador's embassy to arrest Julian Assange is hostile and extreme, WikiLeaks says.
"A threat of this nature is a hostile and extreme act, which is not proportionate to the circumstances, and an unprecedented assault on the rights of asylum seekers worldwide," Wikileaks said in a statement on its website on Thursday (AEST).
ECUADOR: UK THREATS 'HOSTILE AND UNFRIENDLY'
Ecuador's government have slammed the UK threats, calling them hostile and unfriendly. Saul Gangotena, Ecuador's Ambassador to Australia, says his country has called upon the United Nations to intervene on what is a question of “international conventions”.
"Our minister has said that it is hostile and unfriendly, and that we are going to display all the diplomatic actions necessary to counteract this threat," says Mr Gangotena.
ARE BRITAIN'S THREATENED ACTIONS LEGAL?
The UK's threat to enter the Ecuadorian embassy in London to arrest Julian Assange is a valid legal loophole, says ANU's Professor Donald Rothwell.
Britain would attempt to use the Diplomatic and Consular Premises Act 1987 to revoke Ecuador's embassy status and enter the premises, writes Sarah Joseph of Monash University. “The revocation of Ecuador's embassy status, followed by the entry of police to seize Assange, might be legal under British law. But it seems very unlikely that it is legal under international law, namely the Vienna Convention on Diplomatic Relations 1961. At best, it is an open question.”

