The decision on the legal battle being contested by Mohammed Haneef [Images], Indian doctor and a former terror suspect, to return to work in Australia will be known on December 21, media reports said in Melbourne.

A Federal court spokesman said Chief Justice Michael Black will hand down his decision on Friday.

In August, a Federal Court judge overturned then Immigration Minister Kevin Andrews' decision to cancel the Indian doctor's work visa on character grounds because of his association with alleged UK terror suspects Sabeel and Kafeel Ahmed.

However, lawyers for the Immigration Minister appealed the decision before the full bench of the Federal Court in Brisbane in November following which the three-member panel of judges reserved their decision.

Dr Haneef was arrested at the Brisbane International Airport in July, shortly after the failed terror plots in London [Images] and Glasgow Airport, and was held in custody for 12 days before being charged with supporting terrorism.

The charges were dropped less than two weeks later after Commonwealth Director of Public Prosecutions announced there was no reasonable prospect of a conviction.