Sheikh Faisal has been charged under an 1861 Act
Sheikh Abdullah al-Faisal allegedly "encouraged others to murder persons unknown", a Scotland Yard spokesman said on Wednesday.
The 38-year-old, of Stratford, east London, is being held in custody and is due to appear at Bow Street Magistrates' Court on Thursday.
He was arrested under the 1861 Offences Against the Person Act by anti-terrorist squad officers at a house in Ilford, Essex, at around 0700 GMT on Monday.
Sheikh Faisal was taken to a central London police station where on Tuesday detectives were granted an extra 24 hours to question him.
He is formally accused of "soliciting to murder", a little-used charge defined as encouraging, persuading, endeavouring to persuade or proposing to any person to murder any other person.