The Swedes say "it is our policy... that we never extradite someone on a matter to related to military or intelligence," Carr told ABC television. "They just don't do it."
"To suggest that the Swedes are after him as a CIA conspiracy to get him to Stockholm and allowing him to be bundled off to Langley, Virginia (CIA headquarters) is sheer fantasy," Carr said.
"If the Swedes had him in Stockholm it would be even more hard for the US to extradite, if that's what they want to do."
Australian Assange fled to Ecuador's embassy in June after losing his legal battle in Britain against extradition to Sweden.