"The (Saudi) owner of the sheep has made the offer to unload the sheep free of cost at any port to which they can be directed, so the government is now basically in the process of following that up through our diplomatic posts," the spokesman said.

The Saudi owner of the stranded shipment could not immediately be reached Yesterday.

But another major Saudi importer of Australian sheep, who declined to be identified, said traders in the kingdom were finding it increasingly difficult to offload shipments rejected by the government to buyers in other Arab countries which have started adopting similar screening measures.

The trader, who imports between 300,000 to 400,000 head a year, said Saudi importers were purchasing "large amounts" from New Zealand but that Australia was still the biggest supplier.

"When the government rejects the shipment we try to sell it while it is at sea to other traders in Arab countries and suffer big losses, but it is better to lose 50 percent than 100 percent," he said. "But now other countries are starting to apply the same standards as Saudi Arabia.

"We have a real problem with the Australian exporter and we hope they understand the health precautions," he said.

The trader said imports from New Zealand, Turkey and African states were not enough to meet large demand in Saudi Arabia, especially during the Haj pilgrimage when sheep are slaughtered in accordance with Islamic ritual.

The move comes amid protests about the welfare of the sheep and calls by animal rights groups to ban Australia's A$1 billion ($660 million) a year livestock trade, the biggest in the world.

Australia's Royal Society for the Prevention of Cruelty to Animals said Friday the sheep on the MV Cormo Express were enduring searing summer temperatures of up to 50 degrees Celsius (122 Fahrenheit) and should be immediately put down.

Truss said the Australian government was limited in what action it could take.

"The ownership of the sheep changes to the Saudi importer once they leave the wharf so they technically are no longer Australian sheep...so our capacity to intervene is limited," Truss told Australian radio Yesterday.

Saudi officials originally rejected the sheep in the third week of August on the ground that six percent were infected by scabby mouth disease, above an agreed five percent tolerance level. Australia said only 0.35 percent were infected.

Following the shipment's rejection, the Australian government suspended livestock exports to Saudi Arabia with trade on hold until officials are satisfied animals can be unloaded safely.

The United Arab Emirates also rejected the shipment.

Australia is the largest exporter of livestock, shipping six million sheep and one million cattle worth A$1 billion to unrefrigerated meat markets in Asia and the Middle East a year.

Saudi Arabia is its largest customer for sheep, taking 1.8 million head in 2002/03 worth A$195 million.