Motivated by understanding the Broué's abelian defect group conjecture from algebraic point of view, we consider the question of how to lift a stable equivalence of Morita type between arbitrary finite dimensional algebras to a derived equivalence. In this paper, we present a machinery to solve this question for a class of stable equivalences of Morita type. In particular, we show that every stable equivalence of Morita type between Frobenius-finite algebras over an algebraically closed field can be lifted to a derived equivalence. Especially, Auslander-Reiten conjecrure is true for stable equivalences of Morita type between Frobenius-finite algebras without semisimple direct summands. Examples of such a class of algebras are abundant, including Auslander algebras, cluster-tilted algebras and certain Frobenius extensions. As a byproduct of our methods, we further show that, for a Nakayama-stable idempotent element e in an algebra A over an arbitrary field, each tilting complex over eAe can be extended to a tilting complex over A that induces an almost ν-stable derived equivalence studied in the first paper of this series. Moreover, we demonstrate that our techniques are applicable to verify the Broué's abelian defect group conjecture for several cases mentioned by Okuyama.