However, according to Swedish law, the decision has to be approved by the justice ministry before the former boss of Rwanda's civil aviation can be sent home for a trial, according to Tyri Oehman, Magistrate in charge of the case, was quoted to have told AFP.
It is not known when the justice ministry will make its decision.
The Supreme Court Judges ruled there was nothing in Swedish or European law that prevented someone suspected of genocide from being extradited.
The 53-year-old Ahorugeze, who has been a refugee in Denmark since 2001, was arrested in July 2008 after he was spotted at the Rwandan Embassy in neighbouring Sweden.
Kigali demanded his extradition a month later.
Ahorugeze is suspected of being one of the leaders of the Hutu extremists involved in the genocide and is also believed to have murdered 28 Tutsis in a suburb of the Rwandan capital Kigali on April 7, 1994.
The Spokesperson of the National Public Prosecutions Authority (NPPA), Augustin Nkusi, told New Times of Rwanda that the move was welcomed and it should be emulated by other countries still sheltering the alleged genocide fugitives.
"...what has been done by the Swedish judiciary is commendable and we shall closely monitor any new development in the case," he was quoted to have said.
The April-July 1994 slaughter, worst in modern history, claimed about 800,000 lives of mostly ethnic Tutsis and moderate Hutus.
The UN Security Council established in November, 1994, a Tribunal in Tanzania, to try key suspects.
The Arusha-based International Criminal Tribunal for Rwanda (ICTR) is expected to wind up all first instance trials by end of the year.
The ICTR has so far convicted 38 persons and acquitted six persons.
© Hirondelle News Agency