The 1997 attack targeted one of Egypt's most popular tourist sites

Mr Soliman is accused by Egypt of carrying out militant attacks along with Said Hazan Al Mohammed - an Egyptian arrested in 1999 trying to enter Uruguay from Brazil.

Mr Al Mohammed has denied accusations he was involved in the 1997 attack on Egypt's Luxor temple complex when 58 tourists and four Egyptians were murdered.

Joaquim Mesquita, head of the federal police office in Foz de Iguacu, said Mr Soliman was a member of the Al-Gama'at Al-Islamiyya, or the Islamic Group.

Police are to transfer Mr Soliman to the capital, Brasilia, on Tuesday where he will remain in prison until the Supreme Court decides whether it will accept Egypt's extradition request.

'Innocent'

Mr Soliman is understood to have been living in Brazil for the past eight years and is married to a Brazilian woman, with whom he has a two-year-old daughter.

His neighbourhood in Foz de Iguacu is home to an estimated 20,000 Arab Muslims and has been described by the US State Department as a "focal point for Islamic extremism in Latin America".

He never broke any law in Egypt

Fernando Cesar Resta Antune lawyer

Brazilian authorities stepped up surveillance of the area after the 11 September attacks against America.

Mr Soliman was previously arrested by Brazilian police in 1999 on suspicion of smuggling but was subsequently set free.

Fernando Cesar Resta Antune, Mr Soliman's solicitor, told the Globo television network his client was innocent.

"He never broke any law in Egypt," he said.

"We must now find out what exactly the Egyptian Government considers terrorism."