Twisted tale ...Richard Chichakli, right, is wanted in the US for dealings with arms warlord Viktor Bout, top left, who was played by actor Nicholas Cage, bottom left, in the Hollywood movie Lord of War.

Twisted tale ...Richard Chichakli, right, is wanted in the US for dealings with arms warlord Viktor Bout, top left, who was played by actor Nicholas Cage, bottom left, in the Hollywood movie Lord of War.

An international fugitive with links to the world's most infamous arms dealer who was arrested in Melbourne after applying to be a protective services officer will apply for bail next month.

Richard Chichakli, 53, appeared in the Melbourne Magistrates Court this Thursday flanked by four security guards following his arrest by federal and state police last Thursday after a background check revealed he was a wanted man over his dealings with the "merchant of death" Viktor Bout.

The accountant and close friend of Bout's had spent almost eight years on the run.

The US Government has formally sought an order for Chichakli to be extradited back to America.

Lawyer Alexandra Folie, representing the United States Government, told the court an extradition hearing would have to be held within 60 days of Chichakli's arrest.

Defence lawyer Andrew Sim said Chichakli would apply for bail before the extradition hearing took place.

Mr Sim said the case involved complex legal issues and his client would be relying on a High Court ruling where a person who is facing extradition can be given bail.

"The factual complexities are still being worked through," Mr Sim said.

He told the court there were some custody management issues for Chichakli since his arrest as he was a disabled US army war veteran who suffered from "Gulf War desert syndrome".

Magistrate Dan Muling noted Chichakli's medical issues and remanded him to appear for a bail hearing on February 5.

Mr Muling asked both parties to provide to the court any material to be relied upon during the bail hearing as soon as possible.

When Chichakli first appeared in court last week, the arrest warrant listed a number of aliases he had allegedly used.

Mr Sim said Chichakli had wanted to be known as "Jehad Almustafa", not Chichakli.

On Friday, the Department of Immigration said it was likely Chichakli entered the country under an assumed identity.

US officials allege Chichakli helped Bout – portrayed by Nicolas Cage in the movie Lord of War – illegally buy planes in the US.

In February 2010, the US announced Bout and Chichakli were wanted for money laundering, wire fraud and conspiracy over their alleged links to former Liberian dictator Charles Taylor, who was sentenced last year to 50 years' jail for war crimes.

Chichakli, a US citizen, has been on the run since April 2005, when the FBI and Treasury Department raided his home near Dallas, Texas. It was rumoured he went to Syria then Moscow.

Under American law, it is illegal for associates of Taylor to do business in the US. Bout, allegedly with Chichakli's help, spent years selling arms to Taylor.

Bout was arrested in Thailand in 2008 and in 2010 was extradited to the US to stand trial for terrorism after being accused of intending to smuggle arms to the Revolutionary Armed Forces of Colombia to use against US forces.

Last April he was convicted of four counts of conspiracy to kill Americans, to sell anti-aircraft missiles, and to provide material support to a foreign terrorist organisation.

On his personal website, Chichakli says he met Bout in 1995 in the United Arab Emirates where Chichakli was the commercial manager of Sharjah Airport free trade zone, and Bout wanted to set up an airline.

He says the last time he had business dealings with Bout was in 2000, when he tried to help the arms dealer set up a manufacturing business in the US. The US rejected Bout's visa application.

However, Chichakli admits he stayed friends with Bout, saying he is proud of the fact that he did not abandon him after a damning 2000 UN report raised allegations of arms trafficking.

In 2003, in a New Yorker magazine profile of Bout, Chichakli referred to him as his "friend and brother".