A man accused of murder has been freed on bail by the Chief Magistrate in South Australia.

Timo Pasanen, 43, was arrested last week and charged with murdering Adelaide woman Yasmin Sinodinos, 26, more than two decades ago.

The body was found near a fire track at Anstey Hill in December 1991.

Pasanen was arrested after police allegedly matched his DNA with traces on the victim.

Prosecutors did not oppose bail, which was granted with strict conditions including the accused report three times a week to police and not attend any international departure points.

The man is due back in court in April.

Outside court, relatives of Ms Sinodinos expressed their disappointment Pasanen had been released from custody.