A Melbourne teenager who had terrorism charges against him dropped has won a Federal Circuit Court fight to have a police GPS tracker removed.

Since last September, 19-year-old Harun Causevic, from Hampton Park in Melbourne's south-east, has been forced to wear the GPS ankle bracelet after terrorism charges against him relating to an Anzac Day terrorism plot were dropped.

Federal Judge Hartnett ruled the tracker, which has been monitored by the Australian Federal Police (AFP) for the past nine months, should be removed.

The ankle device was taken off by AFP officers in a small room next to the courtroom.

Causevic, who was supported by his mother in court, did not speak to media.

Outside, his lawyer, Dr David Neal SC, welcomed the ruling.

"Justice has been served. We are very pleased," he said.

While the GPS tracker was removed, the Federal Court ruled an interim control order would substantially assist in preventing a terrorist act.

"The court is satisfied on the balance of probabilities that each of the obligations, prohibitions and restrictions to be imposed on you by this confirmed control order is reasonably necessary, and reasonably appropriate and adapted, for the purpose of protecting the public from a terrorist act," the ruling stated.

Causevic banned from Dandenong mosque

Causevic's movements are still restricted and he cannot go near Army bases or attend the Emir Sultan Mosque in Dandenong.

He is also banned from accessing extremist material online.

Causevic, then 18, was arrested during counter-terrorism raids foiling a plot to attack police officers at an Anzac Day memorial in Melbourne.

He became the first Victorian to ever be held under a highly secretive preventative detention order (PDO) when he was detained without charge following the raids.

Last August, he was released on a good behaviour bond after pleading guilty to weapons offences, after the terror charges were dropped.

Documents released by the Supreme Court last year showed police were concerned over Causevic's close association with Sevdet Besim and Numan Haider.

Haider was shot dead by police after he attacked two counter-terrorism officers with a knife at the Endeavour Hills Police Station.

Last month Melbourne teenager Besim pleaded guilty to planning an act of terrorism over a plot, which included beheading a police officer and stealing the officer's gun during Anzac Day commemorations.