Hernao Montoya is wanted by Bogota and Washington
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Panama is considering where to deport a Colombian detainee accused of heading a major drug cartel.
Arcangel de Jesus Henao Montoya was arrested in Panama on Saturday in a joint operation involving Panamanian and US officials.
The Colombian attorney general, Luis Camilo Osorio, says he will make an extradition request.
But Mr Henao Montoya is also wanted in the United States on charges of drug trafficking and money laundering.
He is believed to be a leader of the Norte de Valle drug cartel, which operates out of the city of Cali in south-western Colombia.
"The United States has requested his extradition and is actively working with Panamanian and Colombian authorities on the issue," a US official told the Associated Press news agency.
Whether Mr Henao Montoya would be sent to Colombia first, or
directly to the United States, is not yet clear, the
official was quoted as saying.
'Difficult catch'
Mr Henao Montoya was arrested in southern Panama on Saturday and taken by police to the capital, Panama City, along with several others.
Police chief Carlos Bares said his capture had been "difficult work".
"This is a significant achievement in the fight against drug trafficking," he said.
The Norte de Valle organisation is thought to have taken control of segments of the international cocaine market left open by the deaths of leaders in the dominant Cali Cartel in the mid-1990s.
The Cali Cartel rose to dominate the international cocaine and heroin market after the death of drugs kingpin Pablo Escobar in 1993.
Colombia remains the world's largest producer of cocaine and a major supplier of heroin to the US.