Faheem Khalid Lodhi, a 34-year-old architect of Pakistani origin, was charged with preparing a terrorist act and recruiting a terrorist group.

His lawyer said he loved Australia and would fight to clear his name.

Federal Police Commissioner Mick Keelty said the arrest was part of ongoing investigations into the activities of French national Willie Brigitte.

AUSTRALIA SECURITY ALERT 22 Sept 2003: French authorities warn Australia about Willie Brigitte 17 Oct 2003: Mr Brigitte deported to France 15 April 2004: Pakistani-born student Izhar ul-Haque is arrested, accused of links with Lashkar-e-Toiba 22 April: Faheem Lodhi, a Pakistani-Australian, is arrested and charged under counter-terrorism laws

Mr Brigitte is being questioned in Paris after being deported from Sydney last October. He has been accused of trying to recruit militants in Australia.

Mr Lodhi - who has dual Australian-Pakistani citizenship - has now been remanded in custody.

Investigators claim he was planning an attack on "a major infrastructure facility", according to the BBC's correspondent in Sydney Phil Mercer.

Intelligence sources have told the BBC that a nuclear facility on the outskirts of Sydney was vulnerable to attack.

But no details were given in court as to what the target of any attack might have been.

If convicted, Mr Lodhi faces a minimum of five years in jail and a maximum of life imprisonment, federal police said.

But his lawyer, Stephen Hopper, said the case against him was "very weak". He said his client was mild-mannered and did not possess extremist views.

Australia's federal police commissioner, Mick Keelty, said the case against Mr Lodhi was linked to both the investigation into Willie Brigitte and the arrest of a 21-year-old Pakistani medical student in Sydney last week.

"This is a matter in which we continue to investigate and there may yet be more (arrests)," said Attorney General Philip Ruddock.

Both Mr Brigitte and Mr ul-Haque are reported to have links with the banned Pakistani organisation, Lashkar-e-Toiba.

Australia, a close US ally, has beefed up its counter-terrorism rules since the 11 September 2001 attacks on New York and Washington.