Fighters of the Islamic State stand guard at a checkpoint in the Northern Iraq City of Mosul
Fighters of the Islamic State of Iraq and the Levant (ISIL) stand guard at a checkpoint in the northern Iraq city of Mosul, June 11, 2014. Picture taken June 11, 2014. REUTERS/Robert Stringer

One of the Australian suspected terrorists pictured in viral photos which showed them triumphantly holding decapitated heads in Iraq has released a statement revealing his terror plans in Australia.

According to reports, Khaled Sharrouf, has sent a statement to Fairfax Media with details of his plans.

Federal police have recently issued a warrant for his arrest. Upon learning that he is now a wanted man, Sharrouf said he would have launched a terrorist attack on his homeland if he did not leave for the Middle East in 2013.

In his statement, the suspected Australian terrorist demanded the release of 12 Muslim prisoners, including five convicts guilty of planning a terror attack in Sydney.

The 31-year-old Sharrouf threatened that if authorities will not leave his sister alone or release his Muslim brothers, "they will be attacked." He bragged that people will never know about the attack's circumstances.

Sharrouf revealed he was inspired to join fighters in Syria and Iraq with ties to terrorist organisation al-Qaeda because he was tired of the "constant harassment" he gets from intelligence and police authorities.

He accused Australian authorities of being "hypocrites" for allowing Jews to fight for the Israeli Defence Force (IDF) while preventing Muslim involvement in conflicts in Syria and Iraq.

Sharrouf wrote, "We r not mad men or dysfunctional as they portray us to be [sic]. By Allah, we are the sane. Anyone who sees what is happening to the muslims around the world... and sits back and does nothing, he is insane."

Police have doubts about Sharrouf's threats but his extremist philosophy may affect his followers on social media.

According to Adam Dolnik, a terrorism expert from the University of Western Sydney, Sharrouf was "taunting" authorities from a faraway and safe distance. He said he doesn't believe the suspected Australian terrorist will return to the country or launch a terror attack.

Authorities have issued an arrest warrant for Mohammed Elomar and Sharrouf after posting photos on Twitter showing them in Iraq and holding decapitated heads and bloody bodies of executed fighters. The photos have since gone viral on social media.