Why was Djokovic's visa cancellation overturned and what happens now?

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Novak Djokovic has won his appeal against the Australian government cancelling his visa in another twist for those around the world watching the conflict unfold.

Judge Anthony Kelly ordered the decision to cancel Djokovic's visa be quashed in the Federal Court this afternoon, directing the Australian government to pay all of the tennis star's costs.

However, it is still not guaranteed Djokovic will be able to stay in Australia and play in the Australian Open.

So why did Djokovic win his case and what happens now?

READ MORE: Novak Djokovic wins court battle to have visa cancellation overturned

The world No.1 has won his case - but he is still no certainty to play at Melbourne Park.

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Why Djokovic won his appeal

Judge Kelly ruled the decision of a delegate to cancel Djokovic's visa was "unreasonable".

Judge Kelly said Djokovic had been told at 5.20am on Thursday, January 6 that he would could have until 8.30am to provide comments in response to a notice of proposed cancellation of the visa.

It was heard Djokovic's comments were then sought about 6.14am, with the delegate's decision made at 7.42am.

"If the applicant had had until 8.30am, he could have consulted others and made submissions to the delegate about why his visa had not been cancelled," Judge Kelly said.

Djokovic's lawyer Nick Wood, SC, spent hours in the hearing conveying the unfairness and/or unreasonableness of this process to the court.

"He had done absolutely everything that he understood, was required to enter Australia," Mr Wood said.

"He needed to speak to people. He wanted to say more and wasn't given this opportunity.

"There was no intelligible reason not to allow him that more time."

What happens now?

It is not yet known for sure whether Djokovic will stay in Australia.

Commonwealth government barrister Christopher Tran followed the order being read by telling the court he had been instructed that the Minister for Home Affairs Karen Andrews could now use discretionary powers to cancel Djokovic's visa.

Judge Kelly confirmed that if Djokovic was summarily removed in that way, he would not be able to return to Australia for three years.

As the court decision was made based on a procedural issue, Immigration Minister Alex Hawke could still use his personal discretion to cancel the visa for a second time.

The Commonwealth could argue Djokovic still did not present all the right documents that were said to be required to obtain the visa.

Source: 9News