Authorities consider $5 million funding for embattled NSW Islamic school

Education authorities are considering whether to give more than $5 million in funding to Sydney's Malek Fahd Islamic School following a court ruling.

File image of the Malek Fahd Islamic School is seen in Greenacre, Sydney Source: AAP

The federal education department is considering whether to release more than $5 million in funding to Australia's largest Islamic school.

On Tuesday the Federal Court ruled Sydney's Malek Fahd Islamic School is entitled to the payment for the April 2016 quarter, after the government withdrew funding over concerns about how the money was being used.

In a statement on Wednesday, the Education Department said it "must now consider whether to delay the April payment, and future payments, under the Australian Education Act 2013".