SYDNEY, May 9, 2005 (IslamOnline.net & News Agencies) - An Australian Muslim leader left for Iraq on Monday, May 9, in an attempt to negotiate the release of a kidnapped Australian contractor, a day before the expiry of a deadline set by his abductors for Canberra to start withdrawing its troops.

The hostage's family, meanwhile, has offered a “charitable donation”, saying they would ask Douglas Wood to close down his business and leave Iraq if he is released, reported Agence France-Presse (AFP).

“We are going to Iraq to help our Australian brother,” said Australia's mufti Sheikh Taj Eldin Al-Hilali, who has already appealed on Arabic television for the release of 63-year-old Wood.

“We feel for his family and will do our best to bring brother Douglas home,” he told reporters at Sydney airport.

“It is our duty to help and pray for brother Douglas Wood and bring him home as soon as possible.”

Asked if he had contacts in Iraq, Al-Hilali replied; “Of course. Many men are friends of Sheik Al-Hilali and they will be of help.”

A new DVD issued by the abductors Saturday intensified concern about the fate of Wood.

The kidnappers set a 72-hour deadline for Australia to start pulling out its troops from Iraq but did not specify what would happen if the deadline was not met.

An exhausted-looking Wood, pictured with two rifles pointed at his head, says in the DVD: “Move out of Iraq or I will be killed.”

Australia, which has about 550 soldiers stationed in Iraq with another 350 soon to be deployed, has said it would not comply with the demand.

Wood's family, meanwhile, separately offered a “generous” charitable donation to the people of Iraq to help secure his release but denied this amounted to paying a ransom.

Wood's brother Malcolm announced the payment offer but would not say how much money would be donated.

“This is not a ransom, there has been no demand for a ransom,” he told reporters in Canberra.

Al-Hilali had agreed to take the family's latest message with him to Iraq, Malcolm announced.

He said the experience of the past few days had forced the family to reflect on the difficulties, sorrows and humiliations suffered by the Iraqi people.

“We empathize with those who have lost loved ones, lost jobs and lost hope,” Malcolm stressed.

“We are moved, therefore, to help and to share the burden.

“We will ask him to close his business down and leave Iraq as soon as he is released,” said the brother according to Bloomberg Web site.

“We appeal to those who have taken Douglas to show compassion and charity toward him.”

Al-Hilali had met Malcolm and another brother Vernon at a Sydney mosque Saturday night to film his televised appeal to the kidnappers.

Wood is the first Australian to be kidnapped in Iraq since the March 2003 US-led invasion.