MADRID—Spanish prosecutors have asked a judge to set bail at (EURO)8.2 million ($10.5 million) for the king's son-in-law and his former business partner before their possible trial in a corruption case troubling the monarchy for the past two years.

Inaki Urdangarin hasn't been charged with a crime, but is a suspect in a case in which he and his partner allegedly funneled about (EURO)5 million in public money their nonprofit foundation received for conferences between 2004 and 2006 to other companies they controlled.

The court in Palma on the Mediterranean island of Mallorca said Wednesday the judge will study the petition.

Urdangarin could have properties embargoed if he fails to provide the bail but wouldn't go to prison.

He is married to the king's second daughter, Princess Cristina.