Estelle Morris has set out the government's latest moves towards a "fair and equitable" policy on returning human remains to their country of origin.

The arts minister was on Wednesday publishing a consultation paper on the care of historic human remains.

It contains the suggestion that an advisory panel could be set up to adjudicate on cases where there are contested claims.

The consultation examines whether museums need more regulation or a code of practice on holding human remains.

Morris said the move was "another important step towards an appropriate response to the claims of indigenous peoples, particularly in Australia, for the return of ancestral remains".

The government has already acted to implement recommendations that the law should be changed to allow museums to move human remains out of their collections, said the minister.

"I hope this consultation will ultimately lead to the establishment of a fair and equitable framework for the holding of human remains in UK museums and considering claims for repatriation," she added.

Other key issues being considered over the course of the consultation include whether current laws relating to the holding of human remains by museums are sufficient and how museums should handle claims for restitution of human remains.

The document noted that there were "two fundamental responsibilities of museums which have given rise to tension".

It said there was an aim to ensure "respect for the diversity of beliefs about the importance of remains of ancestors, and the way in which they should be treated".

But this could cause conflict with the aim of "respect for the scientific value of human remains, for the spirit of scientific enquiry which leads institutions to hold and care for remains, and for the benefits which such enquiry may produce for humanity".

It has been estimated that more than 10,000 indigenous people were brought back from overseas by scientists, explorers and other collectors.

Over recent years museums have faced increased demands to return them for burial in their tribal homelands.

Many are Australian aborigines from the 19th and early 20th centuries but other human remains currently held in the UK include Egyptian mummies and shrunken heads.