Iraqi kidnappers could release Australian

SYDNEY - Australia's Islamic spiritual leader says Douglas Wood could be released by his Iraqi kidnappers within the next 24 hours.

Sheik Taj Aldin Alhilali said he was told the news in a phone call from a man who said he represented the kidnappers of the Australian contractor.

Sheikh Alhilali told an SBS journalist that the kidnappers were willing to release Mr Wood unconditionally, but there was a problem with releasing two other Iraqi hostages.

"They said that they were willing to release Douglas Wood, however, they are not willing to release the other two Iraqis," SBS Arabic radio journalist Majida Abboud-Saab told Southern Cross Broadcasting.

In an interview with Ms Abboud-Saab, Sheik Alhilali denied reports the kidnappers were demanding money for Mr Wood's release.

"They are not placing any conditions on his release," Ms Abboud-Saab.

"He (Sheik Alhilali) is very convinced and he is very optimistic and he is very happy about the fact that they have agreed to release Douglas.

"But he is very upset about the fact that the other two Iraqis are not going to be released."

Sheik Alhilali had sent messages through Iraqi media that he would not leave the country without Douglas Wood, she said.

The two Iraqi hostages both worked with Mr Wood, she said.

Parliamentary secretary for foreign affairs and trade Bruce Billson said the government was trying to confirm the reports and contact Sheikh Alhilali.

"Our information is that we've seen those reports and we're having our officials try and liaise with the sheikh on the ground," he told ABC radio.

"That news is certainly encouraging although, it's unconfirmed, and we're making efforts to establish the veracity of that information."

A spokesman for the Wood family said they had not had any word from the sheikh about the possibility of Douglas Wood's release.

"We haven't heard anything from him," the spokesman said.

The spokesman added the family were trying to find out more from the Australian government.

- AAP