Moussaoui had lived in London
In a brief appearance in a Manhattan federal court, Mr Moussaoui was ordered to be moved to Virginia, where he will face trial on conspiracy charges.
His laywer failed in a bid to block on the transfer on the grounds that the US Government had failed to link him directly to the alleged conspiracy.
Mr Moussaoui, who was handcuffed and shackled in court, was denied bail by Judge Barbara S Jones.
Thirty-three-year Mr Moussaoui was detained in mid-August, after arousing suspicions while seeking flight training in Minnesota.
French concerns
He will be tried in open court, after President George W Bush decided that a public trial would not jeopardise national security.
The French Government, which has already offered consular protection - or legal assistance - to Mr Moussaoui, has warned of diplomatic tensions should he receive the death penalty, which France abolished in 1981.
"No person benefitting from French consular protection should be executed," said French Justice Minister Marylise Lebranchu.
In Paris, the lawyer and fiancee of the imprisoned murderer known as Carlos the Jackal also said she would be providing legal advice to Mr Moussaoui.
Isabella Coutant-Peyre said Mr Moussaoui's mother had contacted her on his behalf.
No take-offs or landings
Mr Moussaoui is reported to have told the flying school he wanted to learn how to fly planes but was not interested in how to take off and land them.
US officials now believe Mr Moussaoui may have intended to be the 20th hijacker but was unable to take up the task as he was in custody.
More than 1,000 other people have been arrested in the US since the attacks - but most of them have not been identified by the US authorities.
Attorney General John Ashcroft said the 30-page indictment against Mr Moussaoui included co-conspirator Osama Bin Laden, America's prime suspect in the terror attacks.
He said the indictment was "another victory in the war against terrorism."
"Al-Qaeda will now meet the justice it abhors," said Mr Ashcroft.