Former US marine Daniel Duggan had spent 19 months in a maximum-security prison before a magistrate on Friday ruled him eligible for extradition.
He has 15 days to apply for a review in the Federal Court, otherwise it falls to Attorney-General Mark Dreyfus to determine whether he should be surrendered to the US.
Duggan's lawyer, high-profile silk Bret Walker, earlier conceded there was no legal argument to be mounted during the brief hearing in Sydney's Downing Centre Local Court.
Outside court, Duggan's wife Saffrine said Friday's hearing was a box-ticking exercise.
"There was no opening in the local court for my husband to run his case, today was simply about ticking boxes and it's time to move on to the next stage," Ms Duggan said.
"We respectfully ask the attorney-general to take another look ... and to bring my husband home," she said.
Asked by Magistrate Daniel Reiss if Friday's hearing would be contested, Mr Walker told the court: "Not really, no."
Mr Reiss noted the position from Duggan's lawyers had "streamlined the considerations significantly".
Duggan blew kisses and made heart gestures from the dock as supporters filled the courtroom. (Bianca De Marchi/AAP PHOTOS)
The magistrate ordered the ex-fighter pilot be held in custody to await extradition under a temporary surrender warrant.
Lawyer Bernard Collaery asked for him to be held at Lithgow to be closer to his family.
Outside court, Mr Collaery described the court's decision as an administrative step that would be followed by a lengthy submission to Mr Dreyfus.
"This was not an examination of the evidence, this was not a mini-trial of matters that are to be decided elsewhere," he said.
A spokesman for the attorney-general said the government did not comment on extradition matters.
Duggan was arrested in Australia at the behest of the US after being accused of breaching arms-trafficking laws by providing military training to Chinese pilots in South Africa between 2010 and 2012.
The ex-pilot and his family argue the charges are politically motivated. (Bianca De Marchi/AAP PHOTOS)
He allegedly received about $100,000 for his services.
The 55-year-old blew kisses and made heart gestures from the dock as supporters filled the room on Friday morning.
Some remained seated on the floor of the packed courtroom while one man accused the magistrate of presiding over a "kangaroo court" before leaving the room.
The ex-pilot and his family argue the charges are politically motivated given the deterioration of Sino-American relations and how long ago the alleged actions occurred.
An April court bid failed to postpone the hearing after claims Duggan had racked up $800,000 in legal bills and was unable to fund his future defence.
In a prison letter seen by AAP, Duggan said he believed his activities were lawful and that the Australian Security Intelligence Organisation and the US Naval Central Intelligence Service knew of his work.
Senator David Shoebridge said he would table a 25,000-signature petition for Duggan's release. (Bianca De Marchi/AAP PHOTOS)
Ms Duggan has presented a petition with 25,000 signatures to politicians in Canberra, calling on Mr Dreyfus to release her husband and end his extradition.
Greens Senator David Shoebridge said he would table the petition in parliament.
"Our government should show some guts, our government should make it clear that being an Australian citizen matters, and that when another country comes for you, they'll protect you as best they can ... but we've seen none of that," he said.
