NEW YORK - A former Chinese doctoral student in the United States must decide by Tuesday whether to accept a plea bargain or continue fighting charges that have mistakenly seen him branded a potential "terrorist".

Zhai Tiantian, a one-time student at the New Jersey-based Stevens Institute of Technology, was charged with making a "terroristic threat" for allegedly making a call threatening to burn down the school building.

The prosecutor has given him the opportunity to plead guilty to a lesser charge of "disorderly persons", which, while not a criminal offense, could still see him face up to six months in jail.