Officials in the attorney general's office were meeting on the issue on Monday afternoon and could make a decision by the end of the day, said the prosecutor, who spoke on condition of anonymity.
Al-Araibi, who fled Bahrain in 2014 before being granted permanent residence in Australia, was arrested while on honeymoon in Bangkok in November on an Interpol notice issued at Bahrain's request.
"We are considering withdrawing the prosecution of Hakeem's extradition from the Criminal Court so he can be released," the prosecutor said.
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