AUSTRALIA appears set to remain in a controversial global group of nuclear energy countries, even though green groups fear the country could end up being the world's radioactive waste dump.

The Rudd Government is yet to take a formal position on Australia's participation in the US-led Global Nuclear Energy Partnership, but sources have indicated it is likely Australia will retain membership.

Quitting would be highly contentious in Washington, and would pit the Labor Government against the Bush Administration, which is driving the partnership through the US Department of Energy.

Foreign Minister Stephen Smith has been quick to bed down the new Government's relationship with the US, visiting key players in the Administration and attending President George Bush's recent State of the Union address.

Other key allies in the partnership of countries involved in the nuclear energy cycle, either as suppliers or users, include Japan and China. The grouping aims to create a closed circle in which enriched fuel is supplied for nuclear reactors, then the waste is recycled and stored appropriately.

Documents from the US confirm that Australia continued to attend meetings of the partnership after Kevin Rudd won the election.

Before then, the Labor Party was critical of Australia's participation in the grouping, arguing that it could lead to Australia becoming the world's nuclear waste dump. The then shadow resources spokesman, Senator Chris Evans, had said Australia had "no interest" in that area.

"We don't accept the argument that as an exporter we should be required to take back the waste product from Australian uranium," he said. "We don't do it in any other industries."

But it is thought that Mr Smith and Resources Minister Martin Ferguson broadly support the alliance, believing it will further Australia's interests as a uranium exporter.

Mr Ferguson is the strongest advocate in Labor Party ranks for expanding Australia's uranium mining and export industries.

Membership of the partnership has now grown steadily to more than 20 countries, including Canada, the world's other major supplier of uranium and a competitor in world markets.

The former prime minister, John Howard, said Australia had joined on the basis of its status as a uranium supplier, insisting it would not accept waste from other countries.

But environment groups and anti-nuclear campaigners never accepted Mr Howard's position. He had attracted controversy by joining the group quietly at a meeting in Vienna.

Australia's full membership of the partnership was never formally announced by the previous government.

A spokesman for Mr Smith declined to comment on Australia's current position on the group when contacted by The Age.