A former US marine pilot accused of unlawfully aiding the Chinese military has been deemed eligible for surrender to America by a NSW court, leaving his hopes of avoiding extradition in the hands of the federal attorney-general.

Daniel Edmund Duggan, an Australian citizen, denies allegations by the US he helped train Chinese military pilots more than a decade ago, which relate to his work at the Test Flying Academy of South Africa.

US authorities allege Mr Duggan was paid about $100,000 for his services but had not sought permission from the US government to provide the training.

The 55-year-old has been held in a maximum-security jail in NSW for the past 19 months after he was arrested in October 2022 at the behest of the US.

Duggan found eligible for surrender

At Sydney's Downing Centre Local Court on Friday, Magistrate Daniel Reiss told Mr Duggan he was eligible for surrender to the US and made an order for the father-of-six to be committed to prison.

Mr Duggan's legal team were expected to make submissions against his extradition earlier on Friday but his high-profile barrister, Bret Walker SC, told the court they no longer had any legal grounds to fight his eligibility for surrender.

"I am submitting there are no arguments that I can properly put against the way in which our friend's written reply dealt with the written response on behalf of Mr Duggan," Mr Walker said.

Despite essentially dropping his defence, Mr Duggan has 15 days to appeal for review.

The ruling does not initiate Mr Duggan's transfer to the US because the federal Attorney-General, Mark Dreyfus KC, must now decide whether the surrender should proceed.

According to the Extradition Act, there is no set time frame for the attorney- general to make this decision following a magistrate's ruling, but the act states a decision should be made as soon as practical.

That decision can also be appealed for review by the Federal Court.

A petition calling for the Australian government to release Mr Duggan has received 25,000 signatures.

Supporters gather outside court

Before the hearing began, Mr Duggan's wife, children and supporters gathered outside court calling for his immediate release.

Friday's ruling comes after Mr Duggan failed to delay his extradition hearing last month, claiming he had already spent up to $800,000 in legal fees and couldn't fund his future defence after his wife was prevented from selling their multi-million-dollar estate near Kiama in October

Mr Duggan faces US charges of conspiracy, arms trafficking and money laundering.

He faces up to 65 years in jail if found guilty.