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A former senior official described as China's most wanted fugitive, accused of embezzling more than $40m (£26m), is set to be extradited from the US.

Chinese state media said Yang Xiuzhu amassed a fortune overseeing construction projects as deputy mayor of Wenzhou in east China in the 1990s.

Ms Yang, 68, left China in 2003. She was detained in the US after entering with a fake Dutch passport last year.

She tops China's list of 100 suspects it wants to extradite.

Ms Yang went into hiding after being sought by anti-corruption investigators in China.

She is now in a detention facility in Hudson County, New Jersey, according to the US immigration agency.

Luis Martinez, a spokesman for the agency, said: "As a foreign law enforcement fugitive, Yang is an ICE [Immigration and Customs Enforcement] priority."

In April, China published the names of 100 suspects in foreign countries wanted for economic crimes, with Ms Yang, on , topping the list.

It was part of Operation Sky Net, which targets officials accused of corruption and living abroad with the aim of confiscating misappropriated money and assets.

State media reported that earlier this month, the number two suspect, Li Huabo, was repatriated from Singapore after five years at large.

China's President Xi Jinping launched a crackdown on corruption when he took office in 2012.

China is pushing for talks with the US on an extradition treaty, which would boost prosecution efforts. It has said there are more than 150 economic fugitives in the US.