Australian Attorney-General Philip Ruddock on Wednesday played down the risk of a diplomatic rift between his country and India over the continued detention of Indian doctor Mohammed Haneef, charged with supporting a terrorist organisation.

He said the concerns raised by the Indian government did not constitute a diplomatic rift between the countries.

"What I understand the Indian government said was they wanted that Haneef be dealt with justly," he said, according to The Australian report.

"I don't know that they were saying he was being dealt with unjustly. They were concerned to express a view about the process they wish to see applied," he said adding, "they're making representations on behalf of their citizen, and they're entitled to do that as Australia offers consular support and assistance to Australians who are dealt with in jurisdictions abroad."

Indian and Australian authorities continued to work closely in investigating Haneef's possible links to the UK terror plots, he added.

"In terms of the ongoing cooperation in relation to investigations relating to terrorist matters, which are cross-jurisdictional, we're having very close cooperation with India as you would expect," he said.

A Brisbane magistrate granted the Indian national bail on Monday, but hours later Immigration Minister Kevin Andrews cancelled his visa on character grounds.

The Indian government formally expressed its concern about Haneef's continued detention on Tuesday.

Haneef's lawyers will on Wednesday launch an appeal in the federal court against Andrews' cancellation of their client's visa.