Collar-bomb suspect's fate in the hands of Clinton

Paul Douglas Peters was arraigned in connection with the bomb hoax in Australia. Photo / AP

US Secretary of State Hillary Clinton will ultimately decide if accused collar bomb suspect Paul Douglas Peters is extradited to Australia, US prosecutors told a Kentucky judge.

Peters is locked up in Oldham County Jail ahead of an October 14 extradition hearing before US District Court Judge Dave Whalin in Louisville, Kentucky.

Prosecutors wrote in a filing to Judge Whalin it will be his role to "hold a hearing to consider the evidence of criminality presented by Australia and to determine whether it is sufficient to sustain the charge" under the extradition treaty the US has with Australia.

"If the court finds the evidence sufficient, it must certify the same to the Secretary of State, who decides whether to surrender the fugitive according to the treaty," the prosecutors wrote.

Peters, a 50-year-old Australian citizen, was arrested by an FBI SWAT team at his ex-wife's home outside of Louisville on August 13.

He is accused of breaking into the Sydney home of Madeleine Pulver on August 3 and placing a fake bomb around the 18-year-old's neck.

Peters faces charges in Australia of: kidnapping; aggravated break and enter with intent to commit a serious indictable offence; and demand property with intent to steal.

US prosecutors told Judge Whalin they anticipate Australian authorities will submit a formal request for Peters' arrest, extradition and surrender to the US State Department before October 14.

Peters' US lawyer Scott Cox has said his client will contest the charges.

- AAP