Australian conman Peter Foster is reported to be on the run in Fiji over alleged gay slurs.

Mr Foster, who sparked controversy in 2002 over his involvement with Prime Minister Tony Blair’s wife Cherie’s purchase of two flats in Bristol, caused a media frenzy in Fiji after starting rumours that a hotel was being opened offering rent boys.

He is believed to have circulated a bogus email to the press claiming a New Zealand developer was creating an exclusively gay resort on the Pacific island catering for rent boys, the Daily Mail reports.

His involvement with the Blair family in 2002 caused media outrage with Cherie at first denying Mr Foster played a role in the purchase of the flats until emails between the two were uncovered.