The 31-year-old spent five days behind bars.
He has been charged with two counts of endangering the life, health or safety of a person last week following an alleged dispute in the Perth suburb of Glendalough last Tuesday at 11pm AWST.
A Perth Magistrate granted Kerr bail on Wednesday under a number of conditions, including a 12-hour a day (7pm to 7am) curfew.
The exact details of the alleged incident and the identities of the complainants were not revealed in court.
But Kerr was not released from custody until Sunday night.
Kerr returned to a residence in Wembley under his bail conditions. Those close to the 31-year-old are said to be concerned for his welfare.
Lawyer John Prior said Kerr acknowledged they were serious allegations.
Kerr is due back in court on November 26.
He played 220 games for West Coast before retiring at the end of the 2013 season.
Kerr was named All Australian in 2007 and twice finished runner-up in the Brownlow Medal.
Daniel Kerr arrives at the Wembley home where he must stay as part of bail conditions. @9NewsPerth #9Newscomau pic.twitter.com/dLNzKySbiP
— Tracy Vo (@Tracy_Vo) November 16, 2014
West Coast released a statement on its website on Wednesday regarding Kerr.
"The West Coast Eagles are disappointed and saddened at news of Daniel Kerr’s recent arrest," the statement said.
"We will continue to support Daniel, who was an outstanding player for this club, to get the help he needs to recover from this situation and to get his life back on track.
"As this matter is now in the hands of police, the club has no further comment to make."
Eagles coach Adam Simpson was asked about Kerr at his press conference on Monday.
"It's a new era at the club at the moment but we respect our past and our past players and anything we can do to help we'll provide that support but we're just concerned for his well being at the moment," Simpson said.