Sydney - Australia was still considering taking its whaling dispute with Japan to international courts, Foreign Minister Stephen Smith said on Thursday.

Smith denied an Australian media report claiming Canberra would drop plans to take the whaling issue to international courts because New Zealand had discovered "significant difficulties" with the approach.

"We are looking at the possibility of international legal action, we are considering that as one of our options," Smith told reporters while on an official trip to Tokyo, according to a transcript released by his office.

Australia sent a customs vessel to track Japanese whalers in Antarctic waters in 2008 and gather evidence for a possible legal case.

However, there has not yet been any announcement on whether a case would proceed.

"We'll make a decision about the need for legal action in due course at a time of our own choosing," Smith said.

"But we are very keen to exhaust diplomatic measures to try and bring this matter to a conclusion."

Smith also said reports that New Zealand had scrapped plans for legal action were inaccurate...