Australia’s prime minister hailed the rescue of countryman Douglas Wood from insurgents in Iraq as a miracle, and his family today said he was in high spirits.

The family of an Australian engineer being held hostage in Iraq offered a “donation” to the Iraqi people today, as Australia’s top Muslim cleric left for Baghdad in a last-ditch effort to win his release.

Australia’s most senior Muslim cleric dashed to Baghdad in a last-ditch attempt today to win the release of an Australian engineer after asking the kidnappers for mercy via Arab TV, arguing that most Australians opposed the war in Iraq.

Two Australian brothers made an impassioned plea on Arabic television today for the release of their elder brother being held hostage in Iraq, saying he was ill and his abduction would not persuade Australia to withdraw troops.