Paul "Doug" Peters, an Australian citizen, was arrested by FBI agents and Australian police from New South Wales at his ex-wife's house in the small, quiet town of La Grange, north-east of Louisville, in Kentucky.
Police officials now say Mr Peters faces charges in Australia that include kidnapping and breaking and entering.
"I can say he'll be charged with a provisional warrant here. In Australia we'll be alleging kidnapping, breaking and entering and committing a serious indictable offense, demanding property," Luke Moore, Commander of New South Wales, Australia's Robbery and Serious Crimes Unit, told WHAS-11
Reports say Mr Peters, a father of three, had been "commuting" between Sydney and the U.S. for a long time as he had lived and worked in America for part of his life.
"Over the course of the last three or four days the New South Wales police have been working very closely with the FBI in the U.S. The offender in this matter was identified and it was confirmed that he travelled to the United States in recent days," Andrew Sciopone of the New South Wales police commissioner in Sydney said.
"There were a range of pieces of evidence that led us to identifying this suspect. But I don't want to speculate on the individual items of that evidence," Luke Moore, also said.
The arrest comes nearly two weeks after 18-year-old Madeleine Pulver was attacked in her home located in the wealthy Sydney suburb of Mosman.
After the shocked teenage girl called the police, special team spent ten hours trying to free her from what was believed to be a live bomb attached to her neck, discovering only hours after the girl was freed that the device did not contain explosives.
Madeleine's family have spoken out to say they are greatly relieved following the arrest of the man.
At a press conference on Monday, William Pulver, made a statement on behalf of his daughter and their family.
"We are enormously relieved that an arrest has been made in the United States overnight. These past two weeks have been a very difficult time for us, and we hope that this development makes the beginning of the end for our family," he said, adding that the family will not be making any further immediate comment.