KUALA LUMPUR - MALAYSIAN police detained 12 men who were allegedly attempting to smuggle protected python skins and gold when the deal went sour and led to a hostage standoff, police said on Friday.

The men were arrested on Thursday in northern Penang state while allegedly trading 164 pieces of snake skin and 10 tins of mineral stones believed to contain gold ore, said a state police officer, who declined to be named citing protocol.

He said an argument broke out during the transaction and four of the men, armed with two pistols, held the other eight hostage for several hours before police ended the standoff.

Mr Noor Alif Wira Osman, director of the state's wildlife department, said the skins were believed to be from blood pythons, a protected species, and can be made into handbags and shoes.

Police have detained all 12 men - seven Malaysians and five Indonesians - the first officer said. Four of the men may face charges for wrongful confinement and possession of firearms, and all 12 could face charges of smuggling protected wildlife.

Mr Noor Alif said the men face up to three years in prison if convicted for unlawful possession of protected wildlife. -- AP