According to the report, Saudi King Salman had intervened to grant Zakir Naik citizenship to protect him from arrest by the International Police Organisation, Interpol.
The 51-year-old preacher left India last year after some perpetrators of the Dhaka terror attack claimed they were inspired by Naik.
The report said last month, Indian courts issued a second arrest warrant for Dr Naik in connection with his alleged role in a terror-related case. He also faces money laundering allegations.
The preacher, who was on Malaysia tour at the time, decided not to return to India and remained in Malaysia where permanent residency status was granted to him five years ago by the Malaysian government.
Indian press reported that the country’s enforcement officials were moving to revoke his passport and request Interpol issue an arrest warrant for him, according to the report.