A federal court in Brisbane on Thursday reserved the decision on the status of the work visa of Indian doctor Mohammed Haneef [Images] until August 21.

Justice Jeffery Spender reserved his decision on the visa of Haneef, who was working as a registrar at the Gold Coast Hospital, until August 21.

It is to be recalled that Immigration Minister Kevin Andrews had cancelled Haneef's work visa after his detention by federal police for questioning over last month's failed UK terror plots.

Andrews had cancelled the visa, saying Haneef had failed the character test provided by immigration laws because he had an association with people suspected of criminal activity, namely his second cousins Sabeel and Kafeel Ahmed.

Haneef's lawyers argued it was no more than an 'innocent association' and not a valid reason to cancel his visa.

Khafeel Ahmed, also an Indian, was the alleged driver of the flaming vehicle that crashed into Glasgow airport in July. He died in a British hospital last week.

Solicitor-General David Bennett QC, representing the immigration minister, said the minister had based his decision on a number of factors including that Haneef had lent his mobile phone SIM card to Sabeel Ahmed when he left the UK last year and had borrowed money from Khafeel.

Haneef returned to India last month after a charge of providing support to a terrorist organisation against him was dropped.