Australia's Federal Court has upheld a November 2010 ruling that a man with dual Serbian-Australian citizenship can be extradited to Croatia to face war crime charges.

Friday's ruling is a further setback to 56-year-old Dragan Vasiljkovic's five-year court battle to remain in Australia. He has one month to appeal the decision.

The former Serb military commander faces accusations of torturing and killing Croatian civilians and prisoners of war during the Balkan conflict in the 1990s.

Vasiljkovic, whose alias's include Daniel Snedden and Captain Dragan, has repeatedly denied committing war crimes.

Australian authorities arrested Vasiljkovic in 2006, after Croatia requested his extradition.

He was released from a Sydney prison in 2009, after a federal court ruled that he faced a substantial or real chance of suffering prejudice if he were sent to Croatia for trial.

Another court cleared his extradtion to Croatia late last year.