She claims to be suffering mental illness and a new psychiatric panel formed in September is due to deliver its assessment in January.

Litzman, who has denied any wrongdoing, is chairman of the ultra-Orthodox United Torah Judaism bloc – junior partners in Israel's ruling coalition with the Prime Minister's Likud party.

In February the Times of Israel reported the then-deputy health minister said his intervention in the case was "for the good of the public".

The Times of Israel has also reported on the Adass school's links to the Gur Hasidic sect, of which Litzman is a member.

Australia/Israel and Jewish Affairs Council executive director Colin Rubenstein said the decision to promote Litzman was "deplorable".

"It's an awful decision and we're surprised and shocked," he told The Age and The Sydney Morning Herald.

Rubenstein said the promotion "must be" related to Netanyahu's quest for political survival, with the Prime Minister facing a third election in quick succession in March after he and Blue and White leader Benny Gantz failed to form a working majority following two recent polls.

"How do you balance moral integrity and pure political survival? We think the Prime Minister has erred on the wrong side on this occasion," Rubenstein said.

He said while the Australia-Israel relationship remained strong, a "certain souring will happen" as a result of Litzman's promotion.

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In an open letter to Netanyahu sent in the hours leading up to the decision, Zionist Federation of Australia president Jeremy Leibler warned the appointment would be "a slap in the face to the Australian Jewish community, the Australian people, the community of Australian olim in Israel and most shockingly to the survivors of Malka Leifer’s alleged abuse".

A statement from Israeli police after their investigation into Litzman in August said: "With the end of this investigation the Israeli police's position is that there is enough alleged evidence against Deputy Minister of Health Yaakov Litzman of offences of fraud, breach of trust and impeachment in testimony in the extradition case".

Australia's Attorney-General and acting Foreign Minister Christian Porter said while ministerial appointments are a matter for the relevant government, "allegations of improper conduct in relation to the Leifer case are of great concern".

"Earlier this month I met personally with government officials in Israel and reaffirmed our resolve to have Malka Leifer extradited to Australia to face 74 charges of child sexual abuse," he said in a statement provided to The Age and The Herald.

"The extradition matter is currently before the justice system in Israel and my call on Israeli authorities is for it to be resolved transparently and quickly.

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"The Government has repeatedly raised our commitment to the extradition case with our Israeli counterparts."

Labor MP Josh Burns, whose electorate takes in the Adass Israel School, said "the farce with Malka Leifer has gone on long enough".

“In the same week Australia publicly stood with Israel against a push to prosecute Israel in the International Criminal Court, the decision to promote Mr Litzman is deeply disappointing," he said, referring to an ICC move to investigate war crimes in the Israel-Palestine conflict.

"The allegations against Mr Litzman are shameful and he should ensure justice by completely removing himself from any part of this case."

After a hearing earlier this month when the new psychiatric panel appointed to assess Leifer's mental wellbeing failed to turn up, accusers spoke of their fury.

"We feel sick with anxiety," said Dassi Erlich, a former student of the Adass school in the suburb of Elsternwick. "Who didn't get the memo? Was this intentional?"

Along with her sisters, Erlich has been lobbying for Leifer to stand trial in Australia.

"Another nerve-racking month," she said of the decision to schedule another hearing for mid-January. "Will it actually go ahead? How much longer can we hold on?"