The Federal Government says the case of alleged Egyptian terrorist, Sayed Abdel Latif, shows politicians shouldn't "create hysteria" over national security.

Mr Adbel Latif was the centre of parliamentary debate last week, after it surfaced he had been held behind "a pool fence" in a low-security detention facility in Adelaide.

However, Interpol has now dropped murder and firearms charges from the "red notice" of Mr Abdel Latif.

"These reported changes ... highlight the need not to play politics with national security", the Attorney-General Mark Dreyfus said.

"Politicians should not jump to conclusions and seek to create hysteria through fear-mongering".

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Listen Duration: 2 minutes 35 seconds 2 m 35 s Listen to the story Download 1.2 MB

Red notices are described as an international "wanted" poster, used by Interpol to inform its 190 member countries that an arrest warrant has been issued.

In a statement on their website, the international crime body says its Cairo bureau has "removed any charges relating to premeditated murder, destruction of property, and possession of firearms, ammunition and explosives without a permit".

"The remaining offences listed on the current valid Red Notice for Mr Abdel Latif are for membership of an illegally-formed extremist organization and forging travel documents for the organisation's members".

Case prompted national security debate

The Coalition's Immigration spokesman Scott Morrison says Interpol's decision doesn't excuse the Government's handling of the case.

"Our government was told by ASIO and the AFP that this individual was the subject of these convictions and was in Australia," he said.

"The Government did absolutely nothing. They didn't even take the step of interrogating further the nature of the security risk.

"It was never the Government's defence in Parliament that somehow these convictions weren't real. The Government had no defence. They did nothing."

The red notice was first issued in 2001 and stated Mr Abdel Latif had been convicted of premeditated murder and was sentenced in absentia under Egypt’s former Mubarak regime.

The Australian Federal Police contacted Interpol and Egyptian authorities after questions about the convictions were raised.

The case has caused the Government to review the way "high risk" asylum seekers are dealt with.

"This situation should have been handled delicately", said Greens' immigration spokesperson Sarah Hanson-Young.

"(The Coalition's) eagerness to exploit situations for their own political gain means they shoot first and ask questions later, ruining any chance of a rational debate on important issues"

Mr Abdel Latif, his wife and children remain in detention.