OTTAWA, March 6 (Xinhua) -- The Supreme Court of Canada on Thursday decided not to hear the extradition appeal from German businessman Karlheinz Schreiber, whose dealings with former Prime Minister Brian Mulroney are under investigation.

    But Schreiber's lawyers struck a deal Wednesday with the Justice Department to keep him in Canada until the probe is completed. He is facing fraud and tax evasion charges in Germany.

    Schreiber should be extradited Thursday according to an extradition order handed down in 2004.

    Schreiber's relationship with Mulroney and other Canadian politicians dates back to the 1980s, when he helped push through the sale of European-made Airbus jets to Air Canada. There have been unproven suggestions that Schreiber paid kickbacks to Canadian politicians in an effort to get the sale through.

    Schreiber claims he gave Mulroney 300,000 Canadian dollars (300,000 U.S. dollars) in cash payments for lobbying the government to establish an arms factory in eastern Canada.

    Mulroney testified before the parliament ethics committee in December that he did receiver the money, but insisted it was for legitimate work he did for Schreiber.

    Prime Minister Stephen Harper has ordered a public inquiry into Schreiber's allegations concerning Mulroney, which is expected to start in June.