The 25-year-old man was arrested when New South Wales counter-terrorism officers, with a warrant from police in Victoria, stopped a car in Guildford in Sydney's west early on Thursday night.
Police in Melbourne are expected to apply for his extradition after he appears in a Sydney court on Friday charged with being a member of a terrorist organisation.
He's the 18th person to be arrested this week -- nine in Sydney and nine in Melbourne -- in counter-terrorism sweeps which police allege foiled a large scale terrorist attack.
Seven men arrested in Sydney on Tuesday are charged with plotting a terrorism act and will hear their charges in court on Friday.
The seven have been held in high-security prisons while an eighth man, who was shot by police during Tuesday’s police raid was charged on Thursday at a bedside hearing in a hospital.
Nine men were arrested in Melbourne this week and charged with belonging to a terrorist group.
The lawyer representing the nine men facing terrorism charges in Sydney says he must wait an unacceptably long time for police to provide a brief of evidence.
The men will appear in Sydney's Central Local Court on Friday where they will apply for bail.
Lawyer Adam Houda said his clients would appear in court via video link from prisons at Goulburn and Lithgow.
Mr Houda said he faced a two-month wait for a brief of evidence.
"All we have is the allegations, a summary, a fact sheet from the prosecution which really doesn't tell us that much," he told ABC radio.
"The prosecution cannot tell us when this terrorist act was to occur or where, by whom, or anything like that.
"Their investigation went for 18 months, they tell us, and on the first day of court we were informed that they require up to 10 weeks to serve us with a brief of evidence, and that's far from satisfactory."
Mr Houda said his clients were being kept in solitary confinement.
"They're all kept in solitary confinement, they're kept in Guantanamo Bay style conditions and they're very oppressive," he said.