The 50-year-old man, who was not named, was released from police custody on Tuesday night, an Australian Federal Police statement said. No plea was entered Friday.
The two suspects are due to appear in court on Friday.
Outside court, Mr Coroneos said: "They're entitled to the presumption of innocence", declining to answer any other questions. "Once the brief of evidence is served, we can assess their legal position". A third man was released, while a fourth remains in detention and is being held under counter-terrorism laws.
Australian authorities charged two men on Friday in relation to a terrorism plot which planned to bring down an global passenger jet with a bomb.
The improvised explosive device was meant to be smuggled onto a flight on July 15th, but the plan was aborted before the device reached airport security.
Investigators said parts of the explosive, a roadside bomb, were sent through global air cargo from Turkey through Islamic State operatives in Syria to one of the suspects in Australia, Phelan said. "I don't want to be specific because it's still under examination for the exactness of it, but high military grade explosive".
"We will be alleging the person who was to carry the IED on the plane had no idea they were going to be carrying an IED", Australian Federal Police deputy commissioner Michael Phelan told reporters in Sydney.
The suspects were also working on building a device to release chemical gas, possibly on public transport but AFP Deputy Commissioner Michael Phelan said police were confident the threat had been "completely disrupted".
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The plan was aborted at the last minute for unknown reasons, and "at no stage did the device breach airline security", Phelan said.
However, there is "no information at all to suggest" the device would be used on an airplane, Phelan said. Concentrations of 700 ppm will result in death if not rescued promptly, he said. Precursor chemicals and other components were found but the accused were "a long way" from making a functioning device.
But it added that the sources said even if the device did make it past the airline check-in, it might have been detected in a security screening.
Mr Phelan confirmed that two search warrants were still ongoing. They conducted raids at several address across the city on Saturday, which led to the arrests of four men.
Investigators were seen rifling through garbage and removing items from houses, dressed in full protective gear.
He also praised Australian airport security and intelligence agencies, saying that they were worth their weight in gold.
Since the arrests, the country's immigration minister has ordered extra security sweeps on all air cargo. "We mobilised quickly and really from my perspective we stopped what could have been a bad crime", he said.
Since then, a dozen attacks have been thwarted and 70 people have been charged.