SAPPORO, Japan: Thousands of aspiring Japanese poodle owners who thought their newly-purchased dogs were actually sheep can breathe a sigh of relief.

A news story which swept the globe this week, alleging that the unsuspecting Japanese poodle lovers had been hoodwinked by swindlers who were selling the sheep for forty times their face value, has been revealed as a hoax.

While the story was proven as false within hours, the damage had already been done.

The story was widely reported as fact by hundreds of mainstream media outlets and internet websites which were left with no option but to print embarrassing retractions.

British tabloid The Sun reported that flocks of sheep had been imported from Australia and the United Kingdom to be sold by an internet company as the latest "must have" miniature pet poodle.

According to Ananova, the sheep, which sell for as little as $32 in Australia, were sold for more than $1300 each to the unsuspecting 'dog' owners.

A real poodle retails for twice that much in Japan.

An alleged quote from a Japanese police spokesperson, now proven to be false, explained that the scheme relied on the fact that sheep are rare in Japan, so many people had no idea what they looked like.

According to the SMH news website report, the scam was unveiled when Japanese film star Maiko Kawamaki went public on a popular talk-show and wondered why her new pet refused to bark or eat dog food.

The SMH said Kawamaki proceeded to show photos of the animal, and was devastated when told that it was a lamb.

Hundreds of other women got in touch with police to say they feared their new "poodle" was also a sheep, according to reports.

However questions started to be raised after one Japanese couple was reported to have become suspicious when they took their "dog" to have its claws trimmed and were told it had hooves, as reported on news.com.au.

The story was only proven false when someone actually called the Japanese police, according to news website ninemsn.

A Mr Yoshida of Sapporo police told CNN his colleagues at the Internet scam section had never heard the story, but said thanks for providing the laugh of the day, according to yahoo!7.

No doubt poodle lovers across Japan are breathing a sigh of relief. However journalists and editors across the world have been left feeling sheepish after having the wool pulled over their eyes so easily.