An asylum seeker accused of placing a fake bomb outside MI5 headquarters on New Year's Day has appeared in court.

Julian Valente Pereira, 32, allegedly placed a cylindrical brown object with a string attached to it, resembling dynamite, at the entrance of Thames House in central London.

Westminster Magistrates' Court heard on Tuesday that Valente Pereira also allegedly had a lighter and a lengthy document marked with "HMCTS" in his possession.

Nia King, prosecuting, said the incident on the afternoon of January 1 led to a road closure outside Thames House as emergency services attended.

She told the court that the defendant is understood to have had a "grievance" with the Home Office.

Jack Ward, representing Valente Pereira, said the defendant is an asylum seeker from Brazil, who moved to the UK in 2018.

He said Valente Pereira is in full-time employment in the City and lives in accommodation provided by the Home Office in west London.

The defendant, who wore a jumper with a St George's flag on it, previously pleaded not guilty to placing an article with intent.

The charge alleged he "placed an article, namely a cylindrical object resembling dynamite, at the entrance of Thames House, Millbank, SW1P, with the intention of inducing in another a belief that the said article was likely to explode or ignite and thereby cause personal injury or damage to property."

He will appear at City of London Magistrates' Court on February 19 for trial.