According to The Australian daily, lawyer Clive Evatt told the New South Wales Court of Appeal he hoped his client would turn himself in within the next two months.
Evatt said he didn't know his client's whereabouts and that Vasiljkovic "might just be camping in the forest."
The judge gave Vasiljkovic two months to appear before the court.
Vasiljkovic, a former Serb paramilitary leader, has been on the run since March 30 when the Australian High Court reimposed an order to extradite him to Croatia to face war crimes charges.