Malaysian opposition leader Anwar Ibrahim has lost his final appeal against a conviction and been sentenced to five years in jail for sodomy.

Malaysia's Federal Court in Kuala Lumpur upheld the charge and sentence against Anwar over the accusations which date back to 2008.

Last year, the Court of Appeal found the 67-year-old guilty of sodomising a former political aide Mohamad Saiful Bukhari Azlan.

He has denied the charge and claimed it was politically motivated.

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Anwar told the ABC's PM program he was "disgusted" with the Malaysian judiciary.

"They had the opportunity to redeem themselves and correct their injustices but instead they choose to go to the dictates of their political masters, their partners in crime for the murder of the judicial institution and integrity," he said.

"They have sold their souls to the devil and are bartering their conscience for material gain and comfort.

"So I am braced for the realities, but I'm not deterred - I will continue my struggle for democracy, freedom and justice."

Anwar has already spent six years in jail for corruption, and said going to prison again would be difficult.

"This is as tough on me as it is for my children, for my family, for my friends," he said.

"But this is a small sacrifice I have to pay for the price of freedom and justice and to encourage Malaysians to continue to support this struggle.

"You tend to dismiss the spirit and the will of the Malaysian people, who want change, who want democracy and freedom, who are tired of corruption, racism, religious bigotry."

The conviction disqualifies Anwar from political office and contesting the next election that must be held by 2018.

'A travesty of justice': Xenophon

Foreign Affairs Minister Julie Bishop said Australia was disappointed by the decision to dismiss Anwar's final appeal.

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Listen Duration: 6 minutes 48 seconds 6 m Listen to Samantha Hawley's report Download 12.5 MB

"We are deeply concerned by the severity of the sentence and we have made our concerns known to the Malaysian government," she said in a statement.

Analysis: Samantha Hawley Anwar Ibrahim's supporters and human rights groups say these charges are politically motivated. They're designed to get rid of him, off the political stage for good and they certainly will do that. He came very close - very close indeed - at the last election in Malaysia to actually taking power. So this will also have a very big impact on the opposition and whether or not it can rebuild itself before the next election in 2018. Many people think there just isn't [someone to take his place]; that there is no one with the sort of charisma that Mr Anwar has that could actually take over that position successfully; so that this might actually be a very lethal blow for the opposition. His wife is also a politician, of course, but she is in her late 60s as well and so that may rule her out. His daughter [Nurul Izzah Anwar] is very popular - she is also pursuing a political career - so she is a possibility. She is seen as a shining star.

"As a friend of Malaysia, Australia encourages the Malaysian government to consider the impact of recent decisions, including the Anwar verdict and the retention of the Sedition Act, on its international standing and its commitment to human rights."

South Australian Independent senator Nick Xenophon, a friend of Anwar, said the Malaysian opposition leader told him after the ruling he would fight the conviction.

He said Anwar told him he wanted the world to know what was happening in Malaysia.

"This is the end of the line," Senator Xenophon told ABC News 24.

"Effectively this will knock out Anwar from contesting the next election... but also it's the effect that it will have on the opposition.

"International human rights groups, international groups of jurists, the International Parliamentary Union, have all said that these charges are trumped up, they're flawed, they're politically motivated.

"It is truly a travesty of justice."

Senator Xenophon said he would speak with representatives from the Commonwealth in relation to the case.



"This is nothing short of an outrage and for Anwar Ibrahim, a man who is highly respected in the region, who has a strong record of fighting for democratic rights for Malaysians and more broadly," he said

"He is a good friend of Aung San Suu Kyi... and he was a good friend of Nelson Mandela, [and] we must keep fighting for this man.

"Australia as a close friend of Malaysia needs to be outspoken in terms of what's occurred."

Malaysian government denies political interference

Hundreds of Anwar's supporters, surrounded by dozens of police, gathered outside the court waving party flags and shouting "Down with [ruling party] Barisan Nasional".

There are fears the verdict may spark protests after opposition gains in a 2013 general election raised the possibility of a genuine challenge for the Barisan Nasional coalition that has ruled since 1957.

Human Rights Watch decried what it called Anwar's "selective persecution".

"Prime minister Najib Razak's government has persisted in its politically motivated prosecution of opposition leader Anwar Ibrahim at the expense of democratic freedoms and the rights to non-discrimination and privacy for all Malaysians," said Phil Robertson, deputy Asia director for the group.

"Allowing this travesty of justice to stand will further undermine respect for rights and democracy in Malaysia."

Mr Najib government has rejected any suggestion of interference in the case.

"The judges will have reached their verdict only after considering all the evidence in a balanced and objective manner," a government spokesman said in a statement after the ruling.

"Malaysia has an independent judiciary, and there have been many rulings against senior government figures.

"In this case, exhaustive and comprehensive due process has been followed over many years.

"That process is now complete, and we call on all parties involved to respect the legal process and the judgment."

Anwar's lawyers appealed against the sodomy conviction and five-year in prison immediately after they were handed down in March.

Sodomy is illegal in Muslim-majority Malaysia where the offence carries a jail term of up to 20 years.

ABC/Reuters