Mark Summers told the court that the bail arrest warrant had "lost its goal and its function" when Sweden withdrew the European Arrest Warrant.
Mr Assange had feared Sweden would hand him over to the United States to face prosecution over WikiLeaks' publication of swathes of classified military and diplomatic documents in one of the largest information leaks in USA history.
Julian Assange will learn next month if the warrant for his arrest will be dropped, after his five-year standoff with police.
Prosecutors have dismissed Julian Assange's attempt to have his arrest warrant for jumping bail dropped as "absurd, unusual and untenable".
Summers' argument was a technical one: that the objective of the arrest warrant was to allow underlying legal proceedings to continue and not for bringing someone to court to face a separate bail offence. Another route to secure his exit from the embassy under the garb of diplomatic immunity was also lost when he was recently denied diplomatic status by the United Kingdom government.
Trump says he's willing to testify in Robert Mueller's Russian Federation probe
Mueller on his investigation on potential links between the Trump campaign and Russian Federation in the presidential election. US Attorney General Jeff Session last week became the first member of the Trump cabinet to be questioned.
"In all the circumstances, it is respectfully submitted that any public interest in maintaining this warrant. has now been spent", his lawyers said in written papers to the court.
Aaron Watkins, representing the CPS, said: "Mr Assange has been released on bail in proceedings, he was under a duty to surrender to custody of the court and he failed to surrender at the appointed time, therefore a warrant stands". They argue that Assange shouldn't be immune from the law simply because he has managed to evade justice for years.
He has been unable to leave the building, in London's wealthy Knightsbridge district, for the past five years without risking arrest and extradition.
For some Assange is seen as a cyber hero who exposed government abuses of power, for others he is a criminal who undermined the security of the West by exposing secrets.
He could face up to a year in prison if convicted.
The prosecution said it was expecting a judgement on February 6.
- Ohio State players jokingly confront Baker Mayfield at Senior Bowl
- Mike Flanagan To Helm Stephen King's 'The Shining' Sequel 'Doctor Sleep'
- English Premier League Report: Southampton v Tottenham Hotspur 21 January 2018
- Turkish Operations Kill Over 30 Syrian Civilians
- Jay Panda suspended by BJD
- LeBron James writes congratulatory message to himself on Instagram
- Shocking video shows iPhone battery bursting into flames after man bites it
- Francis celebrates alum Greta Gerwig's Oscar nominations with Lady Bird
- Snapchat launches feature that lets users share stories outside the app
- Facebook to Have Users Decide What Is 'High Quality' News