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Leifer's treatment in a clinic in a Jerusalem ultra-Orthodox neighbourhood will begin next week and would initially last for six months, but during that time she is only required to receive five treatments.
The Australian Embassy in Tel Aviv says it is studying the judgement closely and assessing its implications, but the ABC understands Australian officials were shocked and deeply concerned by the decision.For two years, she has managed to evade 10 extradition proceedings, claiming that she faces panic attacks whenever scheduled court dates arise and that she is too unwell to attend court.On Thursday, a long-awaited report from the district psychiatrist agreed she was mentally unwell and Judge Amnon Cohen ruled she would not face an extradition hearing until she had completed psychiatric treatment that could go on for years.Her house arrest in Israel will be lifted, allowing her to walk free for the first time since she was arrested by Israeli police at the request of Australia in August 2014.However, the Israeli prosecutor's office has been given 72 hours to appeal the lifting of the house arrest and the ABC understands it will do this.Ambassador Dave Sharma said the Embassy was discussing the next step with the Israeli State Attorney's office.
"We are committed to seeing this woman extradited to Australia to face these very serious child sex abuse charges," he said.
"We are determined to be patient and persevere to this end with the view to seeing her extradited." At a hearing in February, Israeli prosecutor Avital Ribner Oron challenged Leifer's medical claims, telling the judge she believed the former principal was "faking" her illness in order to get rid of the case.
The former principal of an ultra-Orthodox girls school in Melbourne has been ruled mentally unfit to face extradition and had her home detention lifted in a move that has shocked and deeply concerned Australian officials.
A Jerusalem judge has ruled that Malka Leifer is not mentally fit to face extradition proceedings to Australia.
Leifer is wanted by Victorian police on 74 charges of indecent assault and rape allegedly involving girls at the Adass Israel School in Melbourne.
In 2008, after accusations were first raised against her, the former principal fled to Israel with her family in the middle of the night, allegedly with the help of senior members of Melbourne's secretive Adass community.