Egypt drops charges against Australian journalist

Egypt has dropped charges against an Australian journalist held in the country for more than six months accused of inciting public unrest, the federal government says.

Freelance reporter Austin Mackell, from NSW, was arrested with two others in the city of Mahalla on February 11 after being accused by local security forces of paying people to cause unrest.

He was released after two days in custody but banned from leaving the country while he faced charges that carry a maximum seven years' jail.

Foreign Minister Bob Carr said the decision to drop the matter followed a meeting last week between him and Egypt's Ambassador Omar Metwally, as well as extensive consular efforts by Australian Embassy staff in Cairo.

"This is great news for Austin and his family in Australia," Senator Carr said in a statement on Wednesday.

"Our embassy has been advised that the matter has been dropped and Austin's passport and personal equipment will be returned.

"I thank the Egyptian government for their willingness to resolve this matter, and particularly Ambassador Metwally for his support of Australia's consular interests."