"I am confident that everyone, including former prime minister Sanader, can have a fair trial in Croatia," Josipovic said, stressing that the trial would be under the scrutiny not only of the Croatian public, but of the international public as well.

"I am confident that our judiciary will hand down a lawful and just ruling," the president said, declining to speculate if it would be a guilty or a not guilty ruling.

The Salzburg Provincial Court on Monday approved Sanader's extradition to Croatia, Austrian electronic media reported.

Lawyer Werner Suppan, who represents Sanader in Austria, announced an appeal, claiming that Sanader would not have a fair trial in Croatia.

The appeal will be submitted to the High Provincial Court in Linz, which will then render its decision. Until then, Sanader is to remain in custody in Salzburg.

Sanader has been in custody in Salzburg since December 10.

The Croatian judiciary suspects him of abuse of office. He is charged with having syphoned some 80 million kuna from public companies and ministries via the private Fimi Media company. He is also charged with receiving kickbacks amounting to HRK 3.5 million for the approval of a loan which Hypo bank gave to the Croatian government while he was Deputy Foreign Minister.

The Croatian anti-corruption agency USKOK is also investigating his role in illegal business deals between the Croatian power company HEP and the Dioki company.

Sanader is also being investigated, together with Dioki owner Robert Jezic, on suspicions that they tried to ensure unlawful gain of EUR 10 million for Jezic's company, specialised in petrochemicals and plastics production, at the expense of the state-run JANAF oil pipeline operator.

Apart from that, Austria has launched an investigation into Sanader on suspicion of money laundering.