TORONTO - Lawyers for Abdullah Khadr say their client his happy with his latest legal victory.

Yesterday, Ontario's appeal court upheld a decision to not proceed with Ottawa's bid to extradite Khadr to the U.S. to face terrorism charges.

Khadr lawyer Dennis Edney says the federal government has 60 days now to decide whether it wants to ask the Supreme Court of Canada to hear the case.

The Harper government says Khadr is an admitted al Qaeda collaborator who the U.S. accuses of supplying weapons to al Qaeda in Pakistan.

Superior Court Justice Christopher Speyer freed Khadr last summer, citing gross misconduct by the U.S. in its treatment of Khadr.

Khadr's lawyers argued his self-incriminating statements were the product of torture in Pakistan.

The appeal court rejected the federal government's argument that an admitted terrorist was set free because Khadr could be tried in Canada.