The US government has admitted that former Guantanamo Bay detainee David Hicks is innocent and his conviction in 2007 for providing material support for terrorism is invalid.

Mr Hicks' appeal case against the "invented" crime had been told that the US government does not dispute that he is innocent of any offence and his conviction was not correct in fact or law, his lawyer, Stephen Kenny of Camatta Lempens, told Fairfax Media.

The quashing of David Hicks' terrorism conviction is 'one step away' says his lawyer. Credit:Kate Geraghty

Mr Kenny said that the quashing of his conviction is now only one step away.

"We are hoping that the military commission will make a ruling within a month," Mr Kenny said.