Malaysia's political future is up for grabs after opposition leader Anwar Ibrahim was acquitted on Monday of sodomy after a two-year court case that divided voters and dominated politics.

The 64-year-old was charged in 2008 with sodomising a former aide in a case he contended was politically motivated.

With the charges dismissed, analysts said Anwar's next battle would involve creating a viable alternative to the ruling National Front coalition, in power since 1957, if he is to have a chance of beating it in general elections expected to be called this year.

"This [verdict] gives Malaysia an opportunity to move out of dirty politics – for the [National Front] to get out of gutter politics, and for the opposition to … move on and change its tactic from being the 'martyr' and 'target' to one that promotes a positive alternative for voters," said Bridget Welsh, Malaysia specialist at Singapore Management University.

But Anwar, as leader of a three-party coalition that includes Islamists and an ethnic Chinese party, will have his work cut out, according to Malaysian political analyst Ong Kian Ming.

He said that some voters would see Monday's acquittal as a positive step in the reforms recently enacted by the prime minister, Najib Razak. "Had [Anwar] been convicted, he could have garnered more public sympathy. That now won't be as strong. Najib can now try to capitalise on this by continuing on with his political reforms, saying that the judiciary system is free and fair, and … gaining some momentum by leading up to the next election."

Najib hopes to regain a strong mandate, despite suffering in popularity polls, and has promised economic and civil liberty reforms.

In an interview at home after the verdict, Anwar described Malaysia's "need to tackle corruption, unemployment [and create] changes that benefit the civil service, quality education", and his coalition's "plans to provide the people with all this when we take over Putrajaya [Malaysia's administrative capital]".

"Now that I am vindicated and freed, naturally I will work with my friends and … the coalition of opposition parties to ensure we can wrest control," he said.

Experts have warned that the opposition, long seen as underdogs, will now have to prove it can truly take control. Ibrahim Suffian of the thinktank Merdeka Centre told the Malaysian Insider website that "the positive outcome of the case evens out the playing field".

"The next election will now be fought on policy issues, on alternatives of how the country can be further governed and developed, and on quality instead of sensational issues," he said.

Anwar's acquittal followed a trial whose lurid details grabbed headlines in the mainly Muslim country of 28 million, where sex between males is punishable even if consensual. Anwar faced a caning and up to 20 years' jail if convicted.

The case rested primarily on testimony by Anwar's accuser, Mohd Saiful Bukhari Azlan, 26, as well as semen samples found on Saiful's body that investigators said matched Anwar's DNA. Defence lawyers contended that Saiful's testimony about the alleged sodomy, at a Kuala Lumpur condominium in 2008, was riddled with inconsistencies and the DNA evidence mishandled by investigators.

In his ruling on Monday, judge Mohamad Zabidin Diah told a packed Kuala Lumpur courtroom: "The court at this stage could not with 100% certainty exclude the possibility that the [DNA] sample is not compromised. Therefore it is not safe to rely on the sample."

A jubilant Anwar greeted reporters after the verdict, as his family wept. "Thank God justice has prevailed," he said. "I have been vindicated. To be honest, I am a little surprised."

Some 5,000 opposition supporters had gathered outside the court, chanting "reformasi" (reform) as a police helicopter flew overhead and riot police, backed by a truck mounted with a water cannon, watched the crowd amid fears that the demonstration could turn violent.

Three explosions were reported outside the courthouse, with a preliminary investigation finding two explosive devices underneath police cones. Two people were injured and taken to hospital, but it is still unclear who was responsible.

The judgment is seen as a positive step forward for Malaysia's judicial system and could have a major impact on upcoming general elections.

Anwar and supporters have long said the sodomy allegations were a government plot to weaken his opposition coalition. The charges emerged after the grouping made unprecedented gains in the 2008 general elections, winning more than a third of seats.

and aAnalysts believe Anwar, who has vowed to scale back Malaysia's most draconian laws and reunify the racially-divided nation if elected, could potentially knock out the incumbent government entirely.

The trial was Anwar's second in 14 years. Once considered Malaysia's heir apparent, he served as both deputy prime minister and finance minister in the incumbent UMNO party before a spectacular fall from grace with his then premier, Mahathir Mohamad, in 1998.

After repeated calls for reform and an end to cronyism, he faced corruption and sodomy charges – which he adamantly and famously denied whilst sporting a black eye after being beaten by police – and was then jailed for six years until his sodomy conviction was overturned in 2004.

Anwar has since become the glue binding together the three very ideologically different parties in his opposition alliance.

Anwar's accuser, Saiful, who did not attend the hearing, wrote on Twitter after the verdict that he would "remain calm, continue praying and be patient".

In a statement released after the verdict, the Malaysian government said ruling proved that "Malaysia has an independent judiciary and this verdict proves that the government does not hold sway over judges' decisions.

"The current wave of bold democratic reforms introduced by [Najib] will help extend this transparency to all areas of Malaysian life."

But the legal saga may very well continue, as chief prosecutor Yusof Zainal Abiden has not yet decided whether to appeal against the acquittal.

Timeline

1993: Anwar Ibrahim, then 46, becomes deputy to premier Mahathir Mohamad. They have a very close working relationship and Anwar is seen as the heir apparent.

1998: Despite being named Asian of the year by Newsweek, Anwar sacked after falling out with Mahathir over calls for reform and an end to cronyism. He is soon charged with corruption and sodomy (the latter based on accusations by his family's former driver), charges he dismisses as politically motivated.

1999: Jailed for six years for corruption.

2000: Nine year sentence for sodomy.

2004: Anwar freed after Malaysia's top court overturns his sodomy conviction.

8 March 2008: Anwar leads an opposition coalition to wrest a third of parliament's seats and five states from the incumbent National Front coalition, which has ruled Malaysia since it became independent from Britain in 1957.

14 April 2008: A ban against Anwar holding public office, related to his corruption conviction, expires.

29 June 2008: His former aide, Mohd Saiful Bukhari Azlan, then 23, files a police report accusing him of sodomy in a Kuala Lumpur condo. Anwar denies the charges.

31 July 2008: Anwar's wife resigns her parliamentary seat in Penang, her husband's home state, to allow Anwar to contest the byelection.

7 August 2008: Anwar is charged with sodomy.

26 August 2008: Anwar wins a landslide victory in the Penang byelection, is sworn into parliament and declared leader of the opposition.

1 February 2010: Second sodomy trial begins.

9 July 2011: Anwar is injured at a rally calling for clean and fair elections after police fire water cannon and teargas at protesters.

10 July 2011: He warns PM Najib Razak's government that a "hibiscus revolution" may soon occur unless protesters' demands for electoral reform and an "end to dirty politics" are met.

22 August 2011: In a statement to the high court in Kuala Lumpur, Anwar calls the sodomy charge against him "a vile and desperate attempt at character assassination".

3-8 January 2012: Anwar embarks on a national tour, rallying support before the verdict.

9 January 2012: Anwar is acquitted of sodomy charges.