Canadian Muslim Tahawwur Hussain Rana whose bail has been denied in Chicago.

A CANADIAN Muslim held in custody in Chicago on charges of plotting to attack the Danish newspaper that published blasphemous cartoons of Prophet Muhammad has been denied bail, according to media reports.

Tahawwur Hussain Rana, 48, pleaded not guilty to a plot to kill a Danish newspaper cartoonist.  He also pleads not guilty in Mumbai attack.

Rana lost his bid on Tuesday to be released from prison ahead of his trial on two counts of helping to provide "material support to terrorism" for a foiled attempt on the lives of the editor and cartoonist of Jyllands-Posten newspaper.

Rana, a Pakistani-born Canadian citizen, was arrested along with David Headley in October for their alleged roles in the plot.

According to Reuters, Judge Nan Nolan said she had concerns that Rana had the "means and motives" to leave the country ahead of the trial.

Co-defendant David Coleman Headley, who is alleged to have traveled to India and Denmark to scout sites for the organization Lashkar-e-Taiba, is scheduled to be arraigned Wednesday.

Rana's attorney, Patrick Blegen, asked the judge to appoint him as counsel so he can be paid with public funds. Rana is not indigent, but "virtually no one" can afford a defense in such a massive federal case, he said.