Julian Assange's Wikileaks website published leaked diplomatic cablesEcuador has granted asylum to Wikileaks founder Julian Assange two months after he took refuge in its London embassy while fighting extradition from the UK.
It said there were fears Mr Assange's human rights might be violated.
Foreign minister Ricardo Patino accused the UK of making an "open threat" to enter its embassy to arrest him.
Mr Assange took refuge at the embassy in June to avoid extradition to Sweden, where he faces questioning over assault and rape claims, which he denies.
The Australian national said being granted political asylum by Ecuador was a "significant victory" and thanked staff in the Ecuadorian embassy in London.
However, as the Foreign Office insisted the decision would not affect the UK's legal obligation to extradite him to Sweden, Mr Assange warned: "Things will get more stressful now."
Announcing Ecuador's decision, Mr Patino launched a strong attack on the UK for what he said was an "explicit type of blackmail".
The UK Foreign Office had warned, in a note, that it could lift the embassy's diplomatic status to fulfil a "legal obligation" to extradite the 41-year-old by using the Diplomatic and Consular Premises Act 1987.
That allows the UK to revoke the diplomatic status of an embassy on UK soil, which would potentially allow police to enter the building to arrest Mr Assange for breaching the terms of his bail.
Ecuador's foreign minister said: "We can't allow spokespeople from the UK to gleefully say they have been honest when they have threatened us in such a way."
He referred to the UK's note as an "open threat" and accused the UK of "basically saying we will beat you savagely if you don't behave".
Mr Patino said Ecuador believed Mr Assange's fears of political persecution were "legitimate".
He said the country was being loyal to its tradition of protecting those who were vulnerable.
"We trust that our friendship with the United Kingdom will remain intact," he added.
The announcement was watched live by Mr Assange and embassy staff in a link to a press conference from Quito.
The Foreign Office said it was "disappointed" by the statement issued by Ecuador's foreign minister.
It said in its own statement: "Under our law, with Mr Assange having exhausted all options of appeal, the British authorities are under a binding obligation to extradite him to Sweden.
"We shall carry out that obligation. The Ecuadorian government's decision this afternoon does not change that."
The Foreign Office said it remained committed to reaching a "negotiated solution" that allows it to carry out its "obligations under the Extradition Act".
It means Mr Assange's arrest would still be sought if he left the embassy.
On Twitter, Sweden's foreign minister, Carl Bildt, said the country's "firm legal and constitutional system guarantees the rights of each and everyone".
"We firmly reject any accusations to the contrary."
Outside Ecuador's embassy in London, the BBC's James Robbins said Mr Assange's assembled supporters were delighted.
"The political temperature has risen very significantly. It is clear this is only the beginning of a very long legal contest," he said.
And BBC legal correspondent Clive Coleman said there was now a "complete standoff" between the UK and Ecuador regarding the status of the embassy in London.
He said the British government now had to make a decision, adding that the risks were enormous - including making other embassies around the world vulnerable.
"I imagine the Foreign Office is awash with lawyers, discussing their options," said our correspondent.
"I would be very surprised if that power was used - certainly in the short term," he added.
Sex offence accusationsMr Assange entered the embassy after the UK's Supreme Court dismissed the Australian national's bid to reopen his appeal against extradition and gave him a two-week grace period before extradition proceedings could start.
It was during that fortnight, while on bail, that he sought refuge.
A subsequent offer by Ecuador to allow Swedish investigators to interview Mr Assange inside the embassy was rejected.
The Wikileaks website Mr Assange founded published a mass of leaked diplomatic cables that embarrassed several governments, particularly the US's, in 2010.
Mr Assange says he fears that if extradited to Sweden, he will then be passed on to the American authorities.
In 2010, two female ex-Wikileaks volunteers accused Mr Assange, an Australian citizen, of committing sexual offences against them while he was in Stockholm to give a lecture.
Mr Assange claims the sex was consensual and the allegations are
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