A psychiatric panel in Israel has found alleged child sex abuser Malka Leifer fit to stand trial and accused her of faking mental illness to avoid extradition, according to her lawyers.

Leifer’s alleged victims immediately welcomed the latest development in the five-year Jerusalem court case, which has strained relations between Israel and Australia. Australia wants to try the former Melbourne headteacher on 74 sexual assault charges.

Dassi Erlich, an Australian who has accused Leifer of abusing her, said on Twitter that she could not “believe this day has come”.

“Incredible news!! We knew this all along! Such a long wait, justice has come!!” she said.

Leifer’s lawyers, however, said in a statement that they were confident the Jerusalem court overseeing the case would reject the findings, as it had previously dismissed other suggestions that she was feigning mental illness. Leifer has denied all charges raised against her.

If the court accepts the psychiatric decision, which will be formally submitted on Tuesday, it will then have to decide whether Leifer can be extradited.

Manny Waks, founder of Kol V’Oz, an Israel-based organisation against child sexual abuse in the global Jewish community, said the decision was a “monumental development in this prolonged case”.

“We will continue to do all that we can to ensure Leifer is put on a plane back to Australia as soon as possible,” he added.

The case has been mired in delays and suggestions of foul play, including allegations that Israel’s deputy health minister pressured doctors to falsify psychiatric evaluations that would deem Leifer mentally unfit.

The minister, Ya’acov Litzman, has denied any wrongdoing.

Leifer has been accused of feigning illness before. In 2018, videos taken by a private investigator and shared with the Guardian appeared to show her living a “normal” life, and she was rearrested on suspicion of obstruction of justice.

The Jerusalem district court ruled in September that a new expert panel would assess her.