An alleged Nazi criminal has lost his appeal against extradition to Hungary from Australia to face trial for the murder of a Jewish man when he served as a soldier.

Charles Zentai, 88, served as a soldier in the Nazi-allied Royal Hungarian Army during the war and is accused of beating teenager Peter Balzas to death in 1944.

Mr Balazs was allegedly beaten to death because he was not wearing the yellow star which marked him out as Jewish.

He lost his fight against extradition back to Hungary from his home in Perth, Australia last year but has mounted various appeals against the case, which was brought by the Jewish human rights organisation, the Simon Wiesenthal Centre.

His latest appeal since the extradition case began in 2005, argued that when he committed the crime, the deed had not been illegal, the Associated Press reported.

Mr Zentai has now been granted bail and a stay of 14 days before he is extradited.