The suspect, who is in his 50's, was arrested in July after flying in to Israel's capital Tel Aviv. According to Israel's security service, Shin Bet, the man confessed to working for Hezbollah during the interrogation, but his Israeli lawyer denies the charges.
The man's lawyer tells Reuters that he had met with Hezbollah members during previous visits to Lebanon, but that he hasn't done anything to harm Israel's security. According to the Israeli security service, the man planned to gather information on military sites in Israel and then hand over the information to the Lebanese guerilla group.
The Swede was indicted on three criminal counts, Sunday. Neither the Swedish embassy in Israel nor the Swedish Foreign Ministry has yet commented the charges.
Hezbollah fought against Israel in 2006 during the war in Lebanon.