Olympic swimmer Scott Miller has been granted bail over his third round of drugs charges with his lawyer arguing he is unlikely to reoffend because of his notoriety.
Miller appeared in Sydney's Central Local Court on Tuesday via video link from Silverwater jail where he has spent the last 10 days in custody.
Police allegedly discovered 7.75 grams of the prohibited drug ice when they searched him at Potts Point on July 20.
He was charged with supplying an indictable quantity of a prohibited drug.
In court the prosecution said Miller had a clear drug problem and was likely to reoffend if granted bail or until he received treatment.
Miller's lawyer Gregory Goold said his client would plead guilty to the lesser offence of drug possession if testing confirmed the substance to be prohibited.
He also said the substance was initially weighed with its packaging and when weighed alone may fall below the maximum personal use amount of 5g.
"He sees the gravity of his problem," Mr Goold said.
"He wants to get help."
Mr Goold also said Miller was unlikely to possess illegal drugs due to his status in the community.
"The prospect of him reoffending are dimmed by that notoriety," he said.
Magistrate Les Mabbutt considered both arguments, noting Miller's reputation as an Olympian, and granted him strict conditional bail.
He is not allowed to enter the Kings Cross area, which is adjacent to Potts Point, he must report daily to police and he must not leave his nearby Edgecliff unit between 8pm and 7am.
Other conditions include an acceptable person providing $5000 in surety to be forfeited if he breaches his bail.
His matter will come before Downing Centre Local Court on September 17.
Outside court, Mr Goold said Miller needed rehabilitation.
"He's pleased and he's confident that he'll turn his life around," he said.
"He certainly denies that he's a drug dealer."
His arrest came 10 days after he appeared in Waverley Local Court and pleaded not guilty to drugs charges and possessing more than $16,000 in cash.
He was on bail for those offences at the time of his most recent arrest.
Miller will appear at Downing Centre in August on those charges.
The court also heard of his 2009 conviction of two counts of drug supply and one count of receiving stolen property.
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