Mirsad Bektasevic was sentenced to eight years and four months in prison in 2007 following his conviction for terror offences, illegal weapons possession, and assaulting a public servant.
Last autumn Bektasevic requested to be allowed to serve the remainder of his sentence in Sweden and on Wednesday his attorney Richard Backenroth received word from the government that the request had been granted, according to the Svenska Dagbladet (SvD) newspaper.
“He has his family here, Sweden is his homeland, so its completely appropriate,” Backenroth said to SvD.
Swedish justice ministry legal advisor Annika Turndal confirmed the decision on Thursday.
“The Swedish agreement has decided that he can be transferred,” she told AFP.
“He is a Swedish citizen and is considered to have strong ties to the country, having spent most of his life here.”
Turndal added that Bektasevic ties to Sweden played a role in the decision.
“An important consideration in transfers like this is where the inmate is expected to get the best rehabilitation to be able to readjust to life in his home country,” she said.
However, the government in Bosnia-Hercegovina must still approve the transfer, she added.
Bektasevik was convicted in January 2007 along with Danish-born Turkish citizen Abdulkadir Cesur and Bosnian national Bajro Ikanovic.
Bosnian police captured the men in a raid on their homes along with two other people in the autumn 2005.
In the search, police found a suicide bomb belt, nearly 20 kilograms (44 pounds) of explosives, a fuse hidden in a toy, two walkie-talkies and a video on bomb-making.
A video in which two masked men explain that they plan to attack European countries with troops in Afghanistan and Iraq was also recovered.
After the arrests, Bosnia informed Danish and British authorities of the findings, which led to several arrests in Denmark.
Bektasevic confessed that the recording was made with a camera he had borrowed from his aunt, but he denied that it was his voice on the tape.
He was first sentenced to 15 years and four months in prison, but had the sentence reduced following an appeal.