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A British woman who claimed she was gang raped in Cyprus has been arrested on suspicion of filing a false complaint.

The 19-year-old told police that a group of Israeli teens had attacked her in a hotel room in Ayia Napa last Wednesday.

Twelve men - believed to be aged between 16 and 18 - were arrested, but five released shortly after.

The remaining seven were released today.

The youths all deny the claim.

"Rape never took place," one of the sources said.

The woman is now being held on suspicion of public mischief.

(Image: KATIA CHRISTODOULOU/EPA-EFE/REX)

Israeli Education Minister Rafael Peretz, speaking to reporters outside a cabinet meeting on Sunday, said of the Cyprus case: "We need to check the details.

"We are certainly in favour of the children of Israel having the highest moral standard."

The woman reportedly told police she had gone to a party with one of the group, who she had met and slept with previously.

When they went back to his room, she said 11 others rushed in and attacked her at around 3.30am, according to Ynet News in Israel.

(Image: KATIA CHRISTODOULOU/EPA-EFE/REX)

The suspects were pictured covering heir faces with their T-shirts as they were being escorted in and out of the court building.

One was in tears, according to SigmaLive, a Cypriot news portal.

In accordance with Cypriot law on rape cases and because some of the suspects are legally minors, proceedings were conducted behind closed doors.