British police have insisted that Mr Assange could still be arrested for breaching bail conditions should he leave the embassy.
"That is the background", said Mr Summers, adding that the "application is concerned with what we say is the impact of the withdrawing of the European Arrest Warrant".
In December, Assange was granted Ecuadorean citizenship after applying for it months earlier.
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However, Mr Assange suspects there is a secret United States indictment against him for WikiLeaks' publication of leaked classified American documents, and that U.S. authorities will seek his extradition.
"Normally", Judge Arbuthnot said, "such issues would only be considered if somebody were brought to court to explain their failure to surrender to bail". (AAP) Julian Assange has sought refuge in the Ecuadorian embassy since 2012.
Assange only very rarely emerges on the balcony of the embassy building, citing concerns for his personal safety, but frequently takes part in media conferences and campaigns via video link.
"His health issues are not that bad", said Arbuthnot. Last year, WikiLeaks released documents detailing US government hacking tools.
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It is not publicly known whether there is a sealed US indictment against Assange.
Ecuador also asked Britain to grant him diplomatic status. However, with the arrest warrant upheld, Assange can't step onto the streets of London without risking arrest.
NBC News reports prosecutors argued dropping the warrant would reward Assange for avoiding the law.
Extradition lawyer Rebecca Niblock, of the law firm Kingsley Napley, said before the ruling that Assange's legal argument was a longshot.
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Watkins said the case against Assange was "extremely simple" in that he had failed to surrender to custody in answer to bail, therefore the warrant still stood.