The City of Westminster Magistrates Court approved the extradition of the 49-year-old Egyptian-born cleric, although British Home Secretary Jacqui Smith must ratify the ruling, and the United States would then have to formally request extradition, the BBC reported.
Masri, 48, was sentenced to seven years in prison in February 2006 for inciting murder and race crimes, and is in London's high-security Belmarsh prison.
He is wanted on 11 charges in the United States, CNN said. Those allegations include kidnappings in Yemen in 1998 and helping set up a terror training camp in Oregon.
Masri's legal advisers told CNN they were exploring avenues of appeal on the extradition ruling.