Slain woman's partner under 'house arrest'

The estranged husband of murdered Sydney mother-of-two Dayna Isaac will be able to attend her funeral after being granted bail as he awaits sentencing on drugs charges.

Mikkel Isaac made a successful bid for bail from Kempsey prison on Monday following the killing of his wife in western Sydney on January 16.

NSW Supreme Court Justice Dina Yehia permitted the 31-year-old to live with his uncle and grandmother at a Mount Rankin property near Bathurst, effectively under house arrest.

"I have decided to release you to bail ... because of the very unique circumstances of what has happened in the last few days," the judge told Isaac.

Justice Yehia acknowledged Isaac needed to make arrangements for his two young children and that he had to help them and himself process their grief.

Arrested in March 2021, Isaac awaits sentencing after pleading guilty to charges of commercial drug supply, directing a criminal group, supplying a firearm and supplying cannabis.

While Isaac and his wife briefly separated after he was placed in custody, the relationship had begun to reconcile in the month before she was killed, defence solicitor Osman Samin told the court.

"Mr Isaac had spoken to her the night before she was killed and during that conversation, they were talking about where they wanted to live, what they wanted to do with their lives moving forwards," he said.

At that time, Mrs Isaac was in a relationship with another man, Paul Jason Sultana, who she had known for a while and had dated briefly.

Sultana, 32, has been charged with her murder.

Mr Samin told the court that the motive for the alleged killing was Mrs Isaac's realisation she no longer wanted to be in a relationship with her new boyfriend.

The lawyer said his client was locked in his cell for days on end wracked with grief.

"We're talking about someone who's grieving the loss of their wife in circumstances where they're almost entirely blaming themselves for it," Mr Samin said.

Crown prosecutors opposed bail, saying Isaac had a history of criminal activity and had run a sophisticated, large-scale drug operation for two years.

"What is he going to do when he's in that residence 24 hours a day?" the crown prosecutor asked the court.

"(It's) more probable that he would involve himself in some further offending because he'd be simply locked up."

Mrs Isaac and other family members had been drawn into the drug operation as well, the court was told. She was sentenced to an intensive corrections order for her involvement.

Justice Yehia said it was ironic she had been released on the order.

"She was dealt with by an intensive corrections order which means she remained in the community and now this happened."

Bail conditions mean Isaac must remain at the Mount Rankin property except to attend his wife's funeral - for which a date is still to be fixed - and to attend medical and legal appointments.

He is only to possess one mobile phone, is barred from using encrypted apps, and is prohibited from consuming drugs and alcohol.

A $500,000 surety has been provided which will be forfeited if he fails to attend court.

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