The Australian government on Friday said it will not seek the cancellation of Mohammed Haneef's [Images] work visa that was reinstated by a court in Melbourne and that the Indian doctor was free to return to the country.

"I formed the judgment there was no basis for me to seek to move to cancel Haneef's visa," Immigration Minister Cris Evans said.

"The effect of that is that Haneef's visa stands as valid. Haneef is therefore entitled to return to this country and take up employment in accordance with his 457 visa," he said.

The minister said he had reviewed the latest Australian Federal Police information on Haneef and found there was no basis to cancel his visa on character grounds.

Senator Evans also said he was seeking solicitor-general's advice on the Federal Court's interpretation of the Migration Act, and had not ruled out a possible appeal to the high court.

However, he was not inclined to pursue an appeal at this stage.

The government could also consider changes to the Migration Act, he said.