The brother of Australian cricketer Usman Khawaja has been arrested over a forged terror hit list found at the University of NSW earlier this year.
Arsalan, 39, was arrested on Tuesday morning after being pulled over while driving in western Sydney, according to a spokesperson for New South Wales state police.
Police have confirmed that he has been charged with forgery and attempting to pervert justice with regards to a false document containing information on a scheme to target senior politicians and major monuments.
The documents were allegedly found at the University of NSW grounds in August.
The document led them to arrest and imprison 25-year-old Mohamed Kamer Nizamdeen in August.
Nizamdeen spent four weeks in solitary confinement at Sydney's Goulburn Supermax prison before all terrorism charges against him were dropped in October.
"We feel very sorry for him and what was happened to him but what we will be alleging is that he was set up in a planned and calculated manner", he told reporters in Sydney.
It is understood Arsalan Khawaja has been taken to Parramatta police station, where he is being interviewed by counter-terror police.
Mr Khawaja, who worked in the same department as Mr Nizamdeen, had been partly motivated by a "personal grievance" over a woman, police said.
Police will allege Khawaja attempted to set up Nizamdeen because of a dispute over a girl.
An alleged hit list included the former Australian prime minister Malcolm Turnbull and landmarks such as the Sydney Opera House.
Assistant Commissioners Mick Willing and Ian McCartney will be holding a media conference later today at 12.30pm.
The Australian Broadcasting Corp. reported Nizamdeen was now planning to sue police. "I just ask for you to please respect my privacy and my family's privacy during this time".
Mr Nizamdeen was charged with creating a document in connection with preparing for a terrorist act.
"Out of respect for the process, it would be inappropriate for me to make any further comment".
India will be playing Australia in the first test on Thursday and Pakistan-born Usman Khawaja is making a comeback into the team after suffering from injury.