Funding cuts to Islamic school delayed

The federal government must continue funding a Sydney Islamic school while it works on its appeal after a decision by the Administrative Appeals Tribunal.

Sydney Islamic school Malek Fahd has won more time in its bid to regain millions of dollars in revoked funding.

Earlier in April, the school lost a bid to overturn the federal government's decision to withdraw about $20 million over concerns about how it was using the money.

The school took the decision to the Administrative Appeals Tribunal, and on Thursday it ordered the government's decision be stayed.

Malek Fahd lawyer Rick Mitry told AAP this meant the government would be forced to continue funding until the appeal was finalised.

Education Minister Simon Birmingham's office has been contacted for comment.