The Australian government called on its Libyan counterpart to run after the suspected Islamic militants who desecrated dozens of graves in a Commonwealth cemetery, located in Benghazi, where 48 Australian soldiers killed during the Second World War were laid to rest.

Media reports indicated that destruction waged by militants were in retaliation to the Koran burning that sparked waves of protests in Afghanistan, so far resulting to the deaths of six American service members.

Local media reports also suggested that the attack took place last week and that the Libyan government was completely unaware of the incident until a clip of the actions were published online.

A video supposedly taken by the attackers was posted on You Tube and showed the militants smashing and kicking at headstones and tearing down the Cross of Remembrance using a sledgehammer while taunting and laughing.

Men were also filmed shouting invectives at the tomb of the dead Aussie Diggers, declaring too that they intend to destroy every grave in the cemetery, which according to The Australian serves as the final resting place of some 1100 Commonwealth service members.

A statement issued by Prime Minister Julia Gillard denounced the apparent desecration of fallen Australian troopers and demanded that "should the reports prove accurate, we call on the Libyan interim government to investigate and hold to account those responsible."

"The Government is appalled and disgusted by these reports, and condemns without reservation this act of desecration," the statement was reported by The Herald Sun as saying on Monday.

But a statement provided by the Commonwealth Graves Commission on its official website has confirmed the attacks, reporting that "cemeteries headstones were broken and disfigured."

"Both cemeteries will be restored to a standard befitting the sacrifice of those commemorated at Benghazi, but this could take some time because we will need to source replacement stones," the Commission statement was reported by The Australian as saying.

Another confirmation was issued by British Foreign Office Minister Jeremy Browne, who described the attacks as shocking.

In an interview with Sky News, Browne clarified too that "the Libyan authorities themselves were shocked," by the incidents.

"They have been extremely apologetic and made a very strong commitment they will get to the bottom of this happening. They will try and do everything they can to resolve it," the British official added.

Relatives of the war dead had expressed extreme disgust over the incident, with one retired Australian military officer stressing that "any desecration of war graves should be abhorred."

The Coalition also condemned the attacks that vandalised the graves of Aussie war heroes.

"Given our fight for freedom for Libya, I think everyone would be very much hoping the majority of Libyan people themselves will be ashamed by this desecration," opposition veterans' affairs spokesman Michael Ronaldson told The Herald Sun.