Naik, a radical television preacher, reportedly left India in 2016 and subsequently moved to largely Muslim Malaysia, where he was granted permanent residency.
According to Indian media reports, New Delhi asked for him to be extradited in January. The two countries have an extradition treaty.
"As long as he is not creating any problem, we will not deport him because he has been given permanent residency status," Mahathir said at a news conference in administrative capital Putrajaya outside Kuala Lumpur, when asked about the reports.
The reports say India had asked for Naik to be sent back for allegedly inciting youth to engage in terror activities via his hate speeches.
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