An arrest warrant and hefty reward was issued through Interpol on Thursday night for his alleged role in an global scandal involving Odebrecht, a construction conglomerate from Brazil.
Prosecutors allege that Toledo, 70, took $20 million in bribes from Brazil's Odebrecht SA, a family-owned construction conglomerate at the centre of Latin America's biggest region-wide graft scandal.
Now in Paris, Toledo has denied these accusations claiming they are part of a "political lynching coming from my traditional enemies". He was last known to be in France a week ago.
Toledo's lawyer said he did not know Toledo's whereabouts and declined further comment.
"Say when, how and where and in what bank they've given me $20m", Toledo said in an interview with a local radio station over the weekend.
Peru had been informed by USA authorities on Saturday that they were not planning to keep Toledo from boarding a flight to Israel from California that was scheduled to land in Tel Aviv on Sunday.
Peru does not have an extradition treaty with Israel but does have one with the United States.
"We're all very ashamed of what this looks like internationally; all we're asking is that he come back to explain what happened", Perez Tello said.
Alejandro Toledo is alleged to have taken a United States dollars $20 million bribe for awarding a lucrative contract to Odebrecht (La Mula).
Some $10 million in transfers from Odebrecht have been traced to offshore companies linked to Yosef Maiman, an Israeli businessman and longtime friend of Toledo tasked with receiving the bribes, Castro said.
The order calls on Toledo to be placed under "preventative custody" for 18 months, while demanding for his "immediate location, capture and confinement".
Toledo, who has earned economics degrees from Stanford University, has denied wrongdoing and has not been charged or convicted of any crimes.
The U.S. Justice and State Departments did not immediately respond to requests for comment.
The revelation, made in US courts in December, threatens to implicate presidents and former presidents who once promoted the hydroelectric plants, highways and irrigation canals that Odebrecht has built in the past two decades.