The 47-year-old man, who has Austrian citizenship but is originally from Macedonia, was initially arrested in November, along with a dozen other suspected jihadists in police raids that took place across Austria.
He was freed by a judge after a detention hearing but the prosecutor lodged an appeal which was accepted last week.
Meanwhile, a Bosnian man who was arrested in Croatia is being transferred to Graz. The 49-year-old is accused of belonging to a terrorist organization and recruiting jihadists in Austria.
Five suspected radical Islamists are currently in custody in Graz. The prosecutor's office is waiting for police reports, and will then decide on a possible indictment.
Austrian state prosecutors have requested anonymity in the public reporting of proceedings relating to the arrests, as they fear the possibility of reprisal attacks, and some are reported to be under police protection.