A row over security arrangements for the Olympic torch is threatening the Australian leg of the flame's record-breaking route around the world, officials said on Tuesday.

The opening leg of the flame's journey is in doubt after state governments in New South Wales and Victoria rejected plans by Athens organisers to send their own Greek security guards to protect the torch.

Sydney, host of the 2000 Olympics, is due to be the starting point on June 4 for the torch's two-month journey through 33 cities. Melbourne, venue for the 1956 Games, is the next city before the torch is taken to Tokyo.

But Australian Olympic Committee (AOC) president John Coates said the Sydney and Melbourne legs, for which 277 torchbearers are planned, would not proceed unless a solution was found to the dispute over security guards.

"Unless this is resolved, it won't happen here," Coates was quoted as saying by the Australian Associated Press.

New South Wales Premier Bob Carr said local laws prevented non-Australians from working as police or security personnel.

LEGAL RESTRAINTS

"There are legal restraints on anyone else running around with a security function on Australian soil, other than our police," Carr told reporters.

AOC secretary-general Bob Elphinston said Australia had been negotiating for two months with Athens organisers, who wanted local torchbearers accompanied by a Greek runner and four Greek motorbike riders wearing their own country's uniforms.

He said Australian officials hoped to respond later on Tuesday to a compromise proposal received overnight from the Athens Games organising committee.

"We've been struggling with them and they just don't want to understand the legislative requirements," Elphinston told Australian Broadcasting Corp radio.

Elphinston gave no details of the compromise.

Carr also said he hoped a deal could be worked out.

"We're negotiating vigorously of course. We want it here and we'll do anything reasonable to get it here," Carr said.

The Olympic flame is due to visit a record 27 nations and will be carried through Africa and South America for the first time before the Athens Games begin on August 13.

The Athens Games will also boast the biggest security operation in Olympic history. Its bill of 650 million euros (US$777.7 million) will be three times the amount spent on security in Sydney in 2000.