Jamal Mohammad first lodged the charges against Gatto in February, alleging the 69-year-old threatened and assaulted him over two decades.
The Office of Public Prosecutions on Friday confirmed it would take over the prosecution.
Mick Gatto is charged with extortion with threat to kill, blackmail, assault and producing firearms. (Justin McManus/AAP PHOTOS)
According to court documents, Gatto has been charged with 10 offences including extortion with threat to kill, blackmail, assault and producing firearms.
It's alleged Gatto in 1999 threatened to physically harm Mohammad unless he was paid $2000 a week, with the arrangement allegedly continuing through to 2019.
Gatto is also accused of assaulting Mohammad in 1999, and threatening the restaurateur if he didn't transfer ownership of his businesses in 2000 and 2004.
Mohammad claims when he first tried to recover $4 million Gatto allegedly owed him in June 2019, the underworld figure threatened to kill him.
It's alleged further threats were made in May and June 2023.
Gatto is also accused of producing a hand gun while making threats to Mohammad in 1999, 2002 and 2014.
The court was told there were no differences between the charges Mohammad first filed with the court and the ones the police were pursuing.
Mick Gatto's accuser Jamal Mohammad is due to face court on firearms charges in November. (Joel Carrett/AAP PHOTOS)
Prosecutors have until October 26 to provide the full brief of evidence to Gatto's lawyers.
Any material already in the hands of prosecutors needed to be handed over to Gatto's legal team within seven days, Magistrate Brett Sonnet ordered.
Gatto did not appear in Melbourne Magistrates Court on Friday but he will next face a committal mention hearing on December 6.
Police in August laid separate charges against Mohammad, alleging he possessed a trafficable quantity of firearms while also being a person prohibited from possessing firearms.
The alleged offending happened on September 13, 2023, charge sheets state.
Mohammad is due to face Melbourne Magistrates Court over those allegations in November.