A police bid to have disgraced whistleblower Ashton Foley extradited to Western Australia to face charges of attempted extortion has failed.

Perth detectives had travelled to Victoria to apply to have Foley extradited, after she was charged with demanding property with threats from her former employer Health Solutions WA (HSWA).

They had claimed she was a flight risk.

But at Latrobe Valley Magistrates Court in Victoria on Friday, mother-of-seven Foley was granted bail, and told to appear at the Perth Court on March 1 under her own volition.

Foley, whose damning allegations against the privately-run Peel Health Campus sparked a government inquiry, has already appeared in court once this week, where she was fined $1000 for breaching a community order.

On Thursday, police confirmed she was also being charged for demanding money she was not entitled to from Health Solutions WA (HSWA), which ran the Peel hospital, threatening to release documents in her possession to the media.

Foley had previously been praised by a parliamentary committee for her bravery in coming forward with evidence against HSWA.

But later she was forced to admit she had been imprisoned in the United States for about six weeks in 2008 on fraud and identity theft charges.

Records in the US show Foley, under the alias Michelle Marie Foley, is still wanted on a warrant issued in Georgia in 2011 over charges of theft and identity fraud.

WA police were also called in to investigate claims she had falsified information on her application for the job at Peel, and even had allegations of a potential past bigamy case levelled at her.

She is facing further legal proceedings in the WA Supreme Court, after being sued by HSWA.

That case is listed to be heard on February 28.