An Italian businessman has won a court battle against attempts by India to extradite him from Malaysia over the Bofors arms bribery scandal, a legal official said today.

Ottavio Quattrocchi's lawyer told AFP that the court has discharged the Italian businessman and ordered his passport and bail be returned.

"Quattrocchi is a free man. He will not be extradited to India. The application to have him extradited has been dismissed by the court," Mohamad Shafee Abdullah said.

After the court decision, Quattrocchi was quoted as saying: "I'm innocent. I am happy with the judgement," Abdullah said.