One of the nation's top Muslim leaders, Sheik Mohamadu Nawas Saleem, has supported a plan to introduce sharia law in Australia, saying it could operate in the family law system through a new model of Islamic arbitration.

But Attorney-General Robert McClelland yesterday killed off any calls for sharia law in Australia, saying there was no place for it in the Gillard government's debate about multicultural policy.

In its submission to the parliamentary inquiry into the policy, the Australian Federation of Islamic Councils called for Muslims to be offered "legal pluralism".

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