Corrupt former Labor powerbroker Eddie Obeid has been ordered to surrender his passport and not to contact the Crown's star witness after a Supreme Court judge overturned an earlier decision.

Justice David Davies said on Thursday that the "only way" to mitigate concerns Mr Obeid may travel to Lebanon and not return was to order that he hand over his passport to the Director of Public Prosecutions.

Passport surrendered: Eddie Obeid arrives at the NSW Supreme Court on Thursday. Credit:Daniel Munoz

Mr Obeid, 71, is a dual Australian and Lebanese citizen.

The court heard it was "virtually impossible" to extradite anyone from Lebanon to Australia because there is no extradition treaty between the two countries.