It sounds like something you would find in yoghurt -- Lactobacillus rhamnosus, to be precise.

It is a particular strain of probiotic being used along with peanut protein in a long-term trial at Melbourne's Murdoch Children's Research Institute.

The children participating were given a combination of the probiotic together with either a peanut protein or a placebo once a day over 18 months, the dose gradually increased.

At the end of the initial trial, 82 per cent of the children who had received the treatment could eat peanuts without any allergic reactions.

They were tested again four years later, with 70 per cent still able to tolerate peanuts without any problems.

While the researchers are excited, lead author Professor Mimi Tang says they do not want to create false hope.

"I really don't like saying that this is a cure, because a cure implies that we've permanently removed the allergy, and we certainly don't know that at this time. What we've shown is you can actually switch off the allergy in a significant proportion of children and it stays switched off even four years later."

Ten-year-old Olivia May participated in the trial.

She says she loves now being able to eat whatever she likes, including chocolate-coated peanuts.

"I don't have to worry about what I eat, and I don't have to check with, like, different ... like, my mum and dad to see if I can eat it or not."

A company has been formed to try to make the treatment a commercial success.

Prota Therapeutics chief executive Dr Suzanne Lipe says a large-scale clinical trial is the next step, with a view to the massive United States drug market.

"So, it will take us a few years to recruit the number of children that we need to just to replicate these results, and then, once we do that, we'll then work with the FDA (Food and Drug Administration) in the United States to have this therapy approved as a pharmaceutical product that will then be available in the US, and then we'll aim to make it available globally as well."

There is a high prevalence of peanut allergy in Western nations like Australia, which has forced schools and restaurants to adapt.

The Gaylord Indian restaurant in Melbourne is now almost peanut-free, with diners who have peanut allergies advised they can eat almost anything.

Raj Singh is Gaylord's manager.

"The good thing is that we have only one dish -- that is, samosa -- that has only the peanuts. The rest of the dishes, we are peanut-free. So we are really happy with that. And we just say to the guest that you can go ahead with anything, just leave the samosas."