Polish authorities have arrested a suspected Israeli agent accused of involvement in the assassination of a Hamas operative in Dubai in January.

The man identified as Uri Brodsky was arrested in Warsaw earlier this month and is accused of illegally obtaining a German passport.

One German passport was among about 30 that Dubai police allege were fraudulently used by the assassins that killed Hamas commander Mahmoud al Mabhouh in a Dubai hotel room.

German media say authorities in Cologne had issued a passport in the name of Michael Bodenheimer, the same name used by one of the alleged assassins.

The reports say Germany is now seeking the man's extradition, but the Israeli embassy in Poland has urged authorities to reject it.

Three Australian passports have also been linked to the Dubai murder, as have 12 British, six Irish and four French, according to Dubai police.

Australia's Foreign Minister Stephen Smith has expelled an Israeli diplomat over the incident, saying it has damaged confidence and trust between the two countries.

- ABC/AFP