A beloved pet sheep at the centre of a costly legal battle, which reached the highest court in Victoria, has reportedly died.

Baa passed away in her sleep following a two-year legal quest, which cost her owner, Vu Ho, around $200,000 in fees.

Baa, who reached the impressive age of 17, had been unwell in recent months suffering from skin cancer and several inoperable tumours before her death on Friday afternoon, according to reports.

Mr Ho had been in a long-standing battle with the City of Dandenong, which ordered him to remove the animal from the backyard of his Springvale property.

A wooly companion of 13 years, Mr Ho took his fight to keep the animal to the Supreme Court of Victoria and the Court of Appeal, but was unsuccessful.

The council ordered Baa from Mr Ho's property in 2011, under a local law prohibiting livestock on land under half a hectare.

Mr Ho argued it was a family pet, not a farm animal.

Last year, the High Court of Australia rejected Mr Ho's application to have the matter heard in the highest court of the land.

Mr Ho remained on Mr Ho's property until her death last week.

News break – August 18