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ABC News
ABC News
National
political reporter Matthew Doran

Daniel Duggan's lawyer says intelligence agency watchdog will investigate claims he was lured back to Australia

Daniel Duggan was moved to the maximum security area of Lithgow Jail in New South Wales last week. (Supplied)

The nation's intelligence agency watchdog is investigating the circumstances leading to former pilot Daniel Duggan's arrest after claims he was "lured" back to Australia to be arrested and extradited to the United States.

On Monday, Sydney's Downing Centre Local Court heard concerns from Mr Duggan's lawyers he had been lured back to Australia from China by US authorities, with the knowledge of Australian intelligence agencies, so he would be in a country where American authorities could launch extradition proceedings.

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