The Supreme Court in Portugal has rejected an appeal by an alleged bomber against extradition to India, officials in Delhi say.
Indian police accuse Abu Salem of involvement in bomb attacks in Mumbai (Bombay) in 1993 that killed more than 250 people and left 1,000 injured.
It was not immediately clear if there are any other legal avenues open for Abu Salem to challenge the order.
Abu Salem, one of India's most wanted men, denies carrying out the bombings.
Forged documents
A spokesman for India's federal investigative agency, the CBI, said it was informed by the Portuguese embassy in Delhi on Friday about the rejection of Abu Salem's appeal.
Abu Salem, 42, is also wanted in connection with murder, extortion and kidnapping cases.
He is currently serving a four-and-a-half-year jail sentence in Portugal for possession of forged documents, imposed in November 2003.
He and a companion, former film star Monica Bedi, were arrested in September 2002. She was sentenced to two years for possessing fake travel documents.
The Portuguese courts have accepted assurances from India that Abu Salem will not face a death sentence or life imprisonment if returned.
A series of blasts in Mumbai in 1993 targeted the stock exchange, the offices of India's national airline, the state passport office and three hotels.
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