Wellington - Internet entrepreneur Kim Dotcom, the target of a US extradition request, said on Tuesday that he would set up a political party in the United States.

Dotcom's Internet Party failed to win any seats when it contested the New Zealand general election in September. Its policies included fairer internet pricing and an end to internet data caps.

He said on Twitter that the US branch of the party would be established next year and would be “well funded”.

Dotcom is in New Zealand fighting extradition to the US on charges of copyright infringement.

On Monday, he was allowed to return to his home after an attempt to revoke his bail was rejected.

Sapa-dpa