Alleged terrorist told to kill at random

Accused terrorist Omarjan Azari has been denied bail after a Sydney court heard explosive extracts from a conversation where he was told to pick and kill a "random unbeliever".

The 22-year-old was allegedly told by Islamic State member Mohammad Baryalei to choose backpackers or tourists from America, France or Britain as "that would be better".

He was asked to kill the victim and film the body next to an ISIS flag.

Azari is facing three other terrorist financing charges.

The matter is next expected back in court on April 29.

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