The decision must be approved by the Swedish justice ministry before Sylvere Ahorugeze, a 53-year-old former director of Rwanda’s civil aviation authority, can be extradited, Tyri Oehman, the magistrate in charge of the case, told AFP.
It was not immediately known when the ministry would make its decision, a spokesman said.
Judges ruled there was nothing in Swedish or European law that prevents someone suspected of genocide from being extradited, according to court documents.
Ahorugeze, who has been a refugee in Denmark since 2001, was arrested in July 2008 after he was recognized at the Rwandan embassy in neighbouring Sweden.
Kigali demanded his extradition a month later.
Ahorugeze is suspected of being one of the leaders of the Hutu extremists involved in the genocide and is also believed to have murdered 28 Tutsis in a suburb of the Rwandan capital Kigali on April 7, 1994.
Hutu extremists killed some 800,000 people, mainly minority Tutsis and moderate Hutus, during the 100-day genocide.
Human rights groups such as Amnesty International have called on countries not to extradite genocide suspects to Rwanda over fears they will not get a fair trial there.