Canberra Muslim Community president Khondoker Yusuf said yesterday that the organisation had listened to issues raised during public consultation meetings and would now try to find a more suitable location in the Gungahlin area.

The Land Development Agency had given the organisation agreement in principle for a direct sale of the Nicholls block on Kelleway Avenue, but will now work with it to identify a new block.

Mr Yusuf said an alternative site could also mean a rethink of the size of the mosque. A capacity of 250 people had been planned for Nicholls, but a larger mosque would now be considered to meet future needs.

''We feel that a majority of people had a concern with the traffic and noise,'' Mr Yusuf said.

''We absolutely consider the people's concerns so we don't want to go for it if there is an issue with traffic parking.''

Chief Minister Jon Stanhope said a site in the Gungahlin Town Centre could be a better option for a 500-capacity mosque as parking would be less of an issue.

For more on this story, see today's Canberra Times.