While he was released after being detained for a month as he had claimed that he was framed by a rival at the University of New South Wales, police will charge Arsalan Khawaja, 39, with forgery and an attempt to pervert justice.
The Australian Broadcasting Corp. reported police were not alleging Arsalan meant to carry out terrorist attacks but that he tampered with the laptop to frame a colleague, 25-year-old PhD student Mohamed Nizamdeen. Nizamdeen, speaking from his native Sri Lanka, later described the police operation which led to his arrest as "immature, embarrassing and biased".
But the case fell apart when handwriting experts were unable to link the writing in the notebook to Nizamdeen, and in October the charges were dropped.
Khawaja, whose brother Usman is an opening batsman for Australia's cricket team, was bailed on condition he surrender his passport and report to police three times a week.
Police alleged on Tuesday that Nizamdeen had been "set up in a planned and calculated manner" by Arsalan.
The man has been taken to the Police Area Command in Parramatta.
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 Malcom Turnbull.
"We have no information to suggest that there is any ongoing threat to the community arising from our inquiries into the matter". "Motivated, in part, by a personal grievance", New South Wales assistant commissioner Mick Willing told reporters.
Arsalan Khawaja is facing serious forgery and attempting to pervert justice charges relating to the discovery of a notebook containing alleged concocted plans to carry out terror attacks in Australia. "Out of respect for the process it would be inappropriate for me to make any further comment", he said. "We feel sorry for him and what has happened to him (but) we had to act early at the time, given the threats contained in that notebook".
Australian police now say they "regret" arresting Nizamdeen.
Usman Khawaja has asked for privacy for him and his family.
Nizamdeen's exact relationship with Khawaja has not been stated by police.