Mohammad Haneef returns to Australia for compensation claims

Wrongly implicated and held over a botched UK terror attack, Mohammad Haneef now hopes the resolution of his compensation claims would give him a chance to move on from his ordeal, though the Indian doctor believes it is "too late" for an apology now.

Haneef, who arrived in Brisbane last night for mediation talks for his hefty compensation claims against the Australian government, has dubbed his return as "a very important step".

Speaking to the media, Haneef said the terrorism charges were a "traumatic experience" for him and his family and impacted his career and reputation.

Haneef, who was working at the Gold Coast Hospital before his arrest in 2007, still looks forward to return to practice in Australia.

"It's too late to expect that now," he said about a personal apology.

"(The arrest) was a traumatic experience for me and my family as a whole. It has impacted on all areas of my life, especially on my career and my reputation," he said.

However, he said Australia was "a very fair place" to live and that he had enjoyed his work in the country.

"Coming back to Australia represents a very important step for me and for my family. I'm grateful to the Australian government and the Australian people for their ongoing support and I'm hopeful that the upcoming mediation will be an opportunity to resolve this matter and give my family and me a chance to move forward," he said.

Haneef is now practising in the UAE but had previously hoped to train as a medical specialist in Australia.

A 2008 inquiry upheld his consistent denials of any wrongdoing, and found he was innocent of the charge filed by the Australian federal police.

"I am very pleased to be back in Australia. My family and I loved living here and there are many of our friends here," he said.

He plans to spend the next 10 days in the country and wants to take his daughter to the Gold Coast.

His lawyer Rod Hodgson said Haneef had suffered terrible injustice.

Mediation of his compensation claim, expected to run to millions of dollars, will be conducted next week by former Queensland corruption commissioner and judge Tony Fitzgerald.

Haneef said he was still considering returning to Australia with his wife Firdous and three-year-old daughter Haniyah, but would not be drawn on whether this was dependent on any settlement from the governmment.

Hodgson said Haneef's treatment was a disgrace and a stain on Australia's reputation as a fair place to live and work. He said the damages would be significant but it would be inappropriate to nominate a number.