Updated

Australia's prime minister says he is discussing with his government how to help thousands of Australian holidaymakers stranded by volcanic smoke on the Indonesian resort island of Bali.

Australians account for more than one in four of the international tourists who flock to the island, so ash spewing from Mount Agung that has grounded local aircraft has also created chaos at Australian airports.

Prime Minister Malcolm Turnbull on Wednesday urged Australians who cannot leave Bali's airport to contact the local Australian Consulate.

Jayson Westbury, chief executive of the Australian Federation of Travel Agents, predicted that Australian tourists would return to Bali in large numbers as soon as the smoke cleared.

Australians largely abandoned Bali for almost two years after 2002 when bomb blasts killed 202 people, including 88 Australians.