An ex-US Marine pilot accused of illegally training China's military is "eligible" for surrender to the United States, an Australian magistrate ruled on Friday.

Daniel Edmund Duggan was arrested in Australia in October 2022 at the request of the US government, which accuses him of breaking arms control laws.

It alleges he illegally trained Chinese military pilots between 2010 and 2012, after he left the military. Duggan has denied the charges.

Magistrate Daniel Reiss ruled that Duggan is eligible for extradition to the United States, Australian media including public broadcaster ABC said.

Reiss ordered the 55-year-old Duggan to remain in prison.

Australia's attorney general must still decide whether Duggan should be surrendered to the United States, the ABC said.

A highly regarded jet pilot, Duggan spent 12 years in the US Marine Corps, reaching the rank of Major and working as a tactical flight instructor.

The father of six moved to Australia in 2002 after leaving the Marines, gaining citizenship and working in an adventure flight company called Top Gun Tasmania.