Italian archaeologists believe they have found the cave where a she-wolf suckled Romulus and Remus, the twin founders of Rome, according to legend.

An underground cavity decorated with seashells and mosaics was discovered near the ruins of Emperor Augustus's palace on the Palatine hill. It is likely to be the long-lost worship place known as Lupercale, the archaeologists said.

"This could reasonably be the place bearing witness to the myth of Rome, one of the most well-known in the world, the legendary cave where the she-wolf suckled Romulus and Remus, saving them from death," said Culture Minister Francesco Rutelli, presenting the discovery.

The 16-metre deep cave was found during restoration work on the palace. Experts used a camera probe and the images suggest the vault, which has a white eagle at the centre, is well-preserved.

According to the myth, Romulus and Remus, the sons of the god Mars, were abandoned by the banks of the river Tiber where a she-wolf found them and fed them with her milk. The brothers are said to have founded Rome at the site and ended up fighting over who should be in charge. Romulus killed Remus.

The Lupercale, named after the Latin word for wolf, became a sacred place to ancient Romans.