Athens Games organisers on Tuesday played down a row over security arrangements for the Olympic torch which is threatening the opening leg of the flame's record-breaking route around the world.

Sydney, host of the 2000 Olympics, is due to be the starting point on June 4 for the torch's two-month journey.

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But the leg is in doubt after state governments in New South Wales and Victoria rejected what they said were plans by Athens organisers to send their own Greek security guards to protect the torch.

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.

"Unless this is resolved, it won't happen here," Coates told reporters.

However, Athens Olympics organising committee (ATHOC) spokesman Serafim Kotrotsos told reporters on Tuesday: "We have absolutely no involvement in security for the torch relay in the 27 cities around the world."

He said there would be Greek personnel accompanying the torch but added that ATHOC had signed identical contracts with all participating cities and it had been agreed that local authorities would provide security.

"Why suddenly all this noise about this?" Kotrotos asked.

AOC secretary-general Bob Elphinston said Australia had been negotiating for two months and Australian officials hoped to respond later on Tuesday to a compromise proposal received overnight from ATHOC.

Kotrotsos said it appeared that Elphinston might have misunderstood an ATHOC request that all those near the torchbearers be dressed in official tracksuits.

"The only thing we have asked is for the personnel running next to the torchbearer, including the local security staff, to wear the official torch relay tracksuit so as to avoid presenting a militarised image that will go around the world," he said.

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