The shock decision came a day after Hironaka, who Ghosn hired just last month in a shake-up of his defence team, told reporters he had filed a "convincing" application for bail that contained fresh elements.
Ghosn, 64, had been detained in the Tokyo Detention House in the Kosuge district since he was arrested on November 19 by the special investigation squad of the Tokyo District Public Prosecutors Office on suspicion of understating his remuneration in the company's annual securities reports.
Aggravated breach of trust for acts related to payments - from a pool of money that only he had the authority to use - to a company controlled by the automaker's Saudi Arabian business partner, Khaled Juffali.
Hironaka, who has a reputation for securing acquittals for high-profile clients in a country where nearly all court cases end in conviction, offered greater surveillance of Ghosn and a limit on his electronic communications to win bail.
But Hironaka said he was determined to restore Japan's reputation, which he said had been tarnished by Ghosn's arrest.
The case has sparked criticism of Japan's criminal justice system and some of its practices, including keeping suspects in detention for long periods and prohibiting defence lawyers from being present during interrogations, which can last eight hours a day.
The court had previously justified Ghosn's ongoing detention by saying he posed a flight risk and could seek to destroy evidence, so Hironaka's bail request offered restrictions meant to win the court's trust.
He is a towering figure in France, where Renault is one of the heavyweight industrial survivors, and has met repeatedly with the past four French presidents; no major economic event in France was held without him.
Long the glue binding the partnership together, Ghosn was the chairman of all three companies, CEO of Renault and head of the alliance until after his arrest.
A release would allow Ghosn to meet more frequently with his lawyers and build a defense ahead of his trial in the coming months.
Ghosn restructured his legal team in mid-February, appointing attorneys including Junichiro Hironaka, who is known for winning not-guilty verdicts in some of the most high-profile cases in the country, earning him the nickname "Razor" for his shrewdness.
The court grants a release on bail if it determined a suspect is unlikely to destroy evidence or flee.
In December Renault said it would keep Ghosn as chairman and chief executive after its preliminary investigation found no evidence of wrongdoing.
Mr Ghosn has been charged with financial misconduct but has consistently denied the charges. He says he is innocent of charges of falsifying financial information and breach of trust.
Speaking to AFP and the French daily Les Echos in January - his only interview with foreign media so far - Mr. Ghosn said his continued detention "would not be normal in any other democracy". Ghosn thanked his family and friends, who, he said, "stood by me throughout this awful ordeal".
Hironaka has said he is in good spirits.
It was not immediately clear whether the appeal by prosecutors would be successful.
He will also be banned from contacting Nissan executives and other people with links to the allegations against him, but he could still attend board meetings if the court gives approval, Kyodo said.