Critics, including Leifer's alleged victims, have accused Israeli authorities of dragging out the case for far too long.
State prosecutor Avital Ribner Oron said Leifer had made "every effort to avoid and delay the extradition proceedings" but that "today the court put an end to those efforts and declared her extraditable to Australia".
The ruling "was an important decision for the rule of law, for international co-operation, and most importantly, to the victims of Malka Leifer's crimes," Oron said.
Earlier this year an Israeli psychiatric panel determined Leifer had lied about suffering a mental condition that made her unfit to stand trial. As a result of the findings, Israel's Justice Ministry said it would move to expedite her extradition.
Three sisters — Dassi Erlich, Nicole Meyer and Elly Sapper — have accused Leifer of abusing them while they were students at a Melbourne ultra-Orthodox school. There are said to be other victims.
The Associated Press does not usually identify alleged victims of sexual abuse, but the sisters have spoken publicly about their allegations against Leifer.
As accusations surfaced in 2008, Israeli-born Leifer left the school and returned to Israel, where she has lived since.
Manny Waks, the head of Kol v'Oz, a Jewish group that combats child sex abuse and that has been representing the three sisters, said Monday's ruling marked "a great day for justice".
"It is a day which at times seemed like it would never arrive, but we are thrilled that it is finally here," Waks said. "It has taken 71 court hearings to get to this point. It has been Israel's shame."
- AP