The UN's Working Group on Arbitrary Detention insisted Julian Assange's detention "should be brought to an end, that his physical integrity and freedom of movement be respected".
"Julian Assange should be afforded the right to compensation," it added.
The Wikileaks founder had been subjected to "different forms of deprivation of liberty" it said, initially while he was held in isolation at London's Wandsworth Prison for 10 days in 2010.
The deprivation had been "continuous" since he was initially arrested in the UK on 7 December 2010.
It also found a "lack of diligence" by the Swedish Prosecutor's Office in its investigations, which resulted in his lengthy loss of liberty.
Three members of the five-person panel found in Julian Assange's favour, while one rejected his claim and another did not take part in the investigation.
Julian Assange(44)who faces extradition to Sweden over a rape claim, which he denies - claimed asylum in London's Ecuadorean embassy in 2012.
He has been arbitrarily detained since his arrest in 2010, UN Panel said
The UK foreign secretary said the decision was "ridiculous", but Julian Assange hailed a "significant victory".
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