But a jury has been unable to reach a decision on lesser backup charges, meaning Vytas Kapociunas' case will linger in the courts while Commonwealth prosecutors decide whether to push ahead with a retrial.

The verdicts of not guilty were met with gasps of relief from Kapociunas, 71, who wiped away tears as he was cleared of three counts of sexual intercourse with a child outside of Australia.

The jury deliberated for roughly a day before acquitting Kapociunas on Thursday morning, and for another day on the alternative charges without result.

Kapociunas had been accused of molesting the child three times in a bedroom while in Spain, where he lived with his wife, former Australian ambassador Jane Hardy.

The child said she had also been touched inappropriately while Kapociunas gave her piggybacks, although he wasn't charged with those acts.

She indicated to her mother that Kapociunas kissed her on her mouth and on her genitals, and repeated the allegations to police and the court.

But Kapociunas vehemently denied ever abusing the girl. From the outset of his police interview, he told detectives the allegations were completely false and said he could not understand why the child had made them.

"I have nothing to hide and these allegations are completely off this world," he told police.

He said he had only ever blown a raspberry on the girl's stomach while the pair were alone in a room together, something he did as he tickled her.

"It was an instinctive thing that I did, which I now greatly regret. But it was completely innocent," he told the court.

His barrister Bernard Collaery had described the girl as "imaginative".

Significant character evidence was called on Kapociunas' behalf, including from current Department of Defence secretary and former ambassador to the US Dennis Richardson.

Witnesses, some of whom grew up as children around Kapociunas, described him as a kind and lovely person of integrity.

Mr Collaery had questioned why his client, who had a clean record, would have suddenly decided to abuse a girl at the age of 71, particularly while others were in the home at the same time.

The Crown, however, argued the girl's evidence had been consistent since the allegations first came to light.

Kapociunas, they alleged, had lied about the way he piggybacked the girl, giving differing versions to police and the court because he knew his original evidence looked bad.

In his police interview, Kapociunas said to officers he'd told the girl she 'looked good enough to eat' after blowing the raspberry on her stomach.

Carolyn Davenport, SC, counsel for the Crown, said the raspberry and the comments were unusual, considering Kapociunas barely knew the young girl.

Ms Hardy was in court as the not guilty verdicts were read out and looked visibly relieved.

The pair left the ACT Supreme Court arm-in-arm.