The federal government has extended its deadline to consider Singapore Telecommunications' proposed AU$17 billion takeover of Cable & Wireless Optus by another 90 days.
A government spokeswoman said an interim order had been signed giving the Foreign Investment Review Board extra time to consider the bid after the initial 30-day deadline ended.
The Australian government has said previously it was investigating the security implications of the proposed takeover as the deal would give SingTel access to Optus satellites that transmit sensitive Australian military data.
C&W Optus investors cannot accept SingTel's cash and scrip offer without government approval.
The FIRB has to make a recommendation to Treasurer Peter Costello for a final decision.
SingTel, which is 78 percent owned by the Singapore government, launched a formal takeover for Australia's second largest telecoms company in March but is awaiting approval from the US and Australian governments.
