An outspoken critic of human rights in Malaysia, Mr Xenophon was on an election fact-finding mission.
Mr Xenophon was detained as he tried to enter on Saturday and returned to Australia on Sunday.
He will be chief editor on Herodotus and Xenophon, but the volumes following will be shepherded by well-credentialed scholars.
The Malaysian government said Mr Xenophon had taken part in an illegal street protest for electoral reform last April.
Immigration officials were polite but acting under orders "from above", Mr Xenophon said.
Martin confirmed that Xenophon would continued over hurdles for the rest of the season before switching to the larger obstacles.
Mr Xenophon has been an outspoken critic of human rights in Malaysia.
Nick Xenophon was detained at Kuala Lumpur airport on Saturday as he arrived for talks with Malaysian officials to discuss elections in June.
"This is a tough, hardy horse that I thought from day one would win a decent race or two for us, " said winning trainer Martin of Xenophon.
Australian PM Julia Gillard has said she is "surprised and disappointed" by Malaysia's treatment of Senator Nick Xenophon and vowed to press for an explanation of his deportation.
Mr Xenophon told the BBC he has repeatedly voiced fears that the country's forthcoming elections, due to be held in June, could be subject to "widespread election fraud and corruption".
People like Thomas Jefferson, who drafted the Declaration of Independence and became the third president of the United States, had to rely on Xenophon's Cyropaedia as a reference for the life and leadership of the Persian king.
BBC: Cyrus Cylinder: How a Persian monarch inspired Jefferson
There are four more Landmark editions in the works: A new translation of Herodotus by adjunct professor Andrea Purvis of Duke University, with 21 appendixes and 123 maps, will appear in late 2007, to be followed by reader-friendly volumes of Xenophon's Hellenica, Arrian and Polybius.
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