An Australian woman charged with trying to smuggle three kilograms of heroin through the Kuala Lumpur international airport was denied bail today, her lawyer said.

"The public prosecutors filed an objection to bail, citing reasons that she's a foreigner, and the court has no choice but to deny bail," lawyer Karpal Singh told AFP .

Gordana Paresanovic, who was allegedly found with the drugs hidden in her corset when she was arrested here on Feb 27, appeared downcast as the decision was made in a magistrate's court here, Karpal said.

The 46-year-old woman has escaped a possible death sentence as she was charged with possession of drugs rather than trafficking because she was detained while in transit from Vienna to Sydney.

If found guilty on the lesser charge she faces a fine of up to RM20,000 and a maximum of five years in jail.

The Yugoslav-born woman, who pleaded not guilty, emigrated to Australia some eight years ago and lives in Melbourne.

Early hearing

Karpal said the court had set April 2 for mention of the case, adding that hearing was likely to commence on April 4.

"I've asked that the date be set as soon as possible, so she will not have to remain in jail unnecessarily," he said.

Relations between Malaysia and Australia were strained in 1986 when two Australian men were hanged for drug trafficking.