Attorney-General Mark Dreyfus has approved the US government's request for a former American fighter pilot to be handed over.
Mr Dreyfus agreed to formally receive Washington's extradition request for Daniel Duggan, 54, who has been in custody since October 21, after he was arrested by the Australian Federal Police.
Mr Duggan has been accused by the US government of providing military training to pilots working for China, a claim he denies.
Washington issued an extradition request on December 9, alleging Mr Duggan had engaged in money laundering, and committed offences under US arms export control laws.
According to a 2017 indictment unsealed by a US court in December, "Duggan provided military training to PRC (People's Republic of China) pilots" through a South African flight school on three occasions in 2010 and 2012, while he was a US citizen.
An Attorney-General's Department spokesman confirmed the decision.
"Under Australia's Extradition Act 1988 and Australia's extradition treaty with the US, the Attorney-General was required to make a decision by 25 December 2022 as to whether to formally receive the extradition request,'' he said.
"The Attorney-General has complied with this requirement, and Mr Duggan's lawyer has been informed of that decision.''
Mr Duggan will next face court on January 10 next year.
His defence lawyer Dennis Miralis has been contacted for comment.
