Home Affairs Minister Jason Clare says he has determined that Vasiljkovic - also known as Captain Dragan and Daniel Snedden - should be returned to Croatia to face prosecution for war crimes he allegedly committed during the 1990s conflicts in the former Yugoslavia.
Mr Clare arrived at his decision after careful consideration of the Extradition Act, a spokesperson said.
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
"It is open to Mr Vasiljkovic to seek review of the minister's surrender determination," the spokesperson said in a brief statement on Saturday.
"It would therefore not be appropriate to comment further."
The dual Serbian-Australian citizen has been fighting extradition since he was arrested - while reportedly working as a golf instructor in Perth - in 2006.
In April that year, a magistrate found he was eligible for extradition to Croatia, but Vasiljkovic appealed.
His appeal was upheld by the full bench of the Federal Court two years later, prompting the commonwealth to appeal to the High Court.
Vasiljkovic was released on bail, but he skipped town when the High Court upheld the federal government's appeal. The Australian Federal Police tracked him down 44 days later on the NSW north coast.
It's alleged Vasiljkovic killed Croatian citizens and ordered others to commit murder when he was a paramilitary commander with the Krajina Serbs fighting against Croatia from 1991 to 1995.
