Khatalla was taken into custody earlier this month by U.S. Special Operations and was being held in a secure location in Libya.
A law enforcement source, whose name wasn't reported, told the Washington Post Khatalla was at a federal courthouse in Washington, D.C., and may appear before a federal judge Saturday.
He was brought to the capital from the USS New York, where he was being interrogated.
Khatalla is accused of being a ringleader in the attack on the U.S. consulate in Benghazi, which killed Ambassador Chris Stevens and three other Americans.
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