Police have charged Arsalan Khawaja, brother of Australian Test cricketer Usman Khawaja, with attempting to pervert justice and forgery over a notebook that supposedly contained a terror hit list targeting federal politicians and places in Sydney.
The 25-year-old PhD student had claimed that that he was framed by a rival at his workplace, the University of New South Wales.
He is being questioned "in relation to the alleged attempt to pervert justice, and forgery - making a false document", the report continued.
The Australian Broadcasting Corp. reported police were not alleging Arsalan Khawaja meant to carry out terrorist attacks but that he tampered with the laptop to frame a colleague, 25-year-old PhD student Mohamed Nizamdeen.
He was later released when a handwriting expert could not prove he had written it.
Police alleged on Tuesday that Nizamdeen had been "set up in a planned and calculated manner" by Arsalan.
For months he appears to have convinced Australian police that his 26-year-old university colleague Mohamed Kamer Nizamdeen was embroiled in a plot to kill then-prime minister Malcolm Turnbull. "But, really, the person who is responsible for what occurred to him is the person we're alleging manufactured this document", Assistant Police Commissioner Mick Willing told reporters in Sydney.
Image Khawaja is accused of forgery and attempting to pervert justice. Pic New South Wales Police
Willing confirmed there is no ongoing threat to the community.
The arrest comes as Usman Khawaja prepares with the Australia squad in Adelaide ahead of Thursday's first Test against India, the start of a crucial four-match series in which the home side could challenge India's position as the world's top-ranked Test team.
DECEMBER 4: Arsalan Khawaja, 39, is arrested by police.
Nizamdeen has since returned to his native Sri Lanka and is planning to sue New South Wales police. "Out of respect for the process it'd be inappropriate for me to be making any further comment".
He says they've always been determined to get to the bottom of the matter and "today's arrest is the culmination of that".
Speaking hours after the arrest, he asked for his family's privacy to be respected.
Nizamdeen's exact relationship with Khawaja has not been stated by police.