The father of a Sydney man jailed in Bulgaria for murder has urged the Prime Minister to intervene after his son was refused a transfer to an Australian prison.

Paul ‘Jock’ Palfreeman was sentenced for the December 2007 stabbing murder of a young Bulgarian man, Andrei Monov, and the attempted murder of Monov’s friend in a street fight in Sofia.

Palfreeman was 24 then. His sentence was confirmed by a Bulgarian last instance court in July 2011.

In its decision, the Bulgarian prosecution stated Tuesday that according to the Convention on the Transfer of Sentenced Persons, transfer is a legal option among others.

Bulgaria's Chief Prosecutor Sotir Tsatsarov decided that the small time spent by Palfreeman in jail, currenly 5 years and 10 month, is not enough to fulfill the goals of his punishment.

The prosecution also added that the Australian has committed a number of grave delinquencies while serving his sentence.

Palfreeman's father Simon Palfreeman however says he has been getting a completely different story from the Australian Government in recent weeks.

"All along they had been led to believe there were no intrinsic impediments to this transfer," he told ABC News Breakfast.

"I think up until only yesterday I was being told 'Hang in there, it'll be fine and we should get an answer soon'.

"I think the Bulgarians have treated our Government with contempt."

And he has called on Prime Minister Kevin Rudd to intervene.

"This has to be tackled at a much higher level. I really think someone like Mr Rudd should be taking direct action now," he said.

He says he does not believe his son has behaved badly in jail.

"They have a disciplinary hearing every Friday and as far as I'm aware Jock hasn't been to that for at least a year-and-a-half to two years," he said.

"The irony of course is that less than five weeks ago the courts found that the prison director had misbehaved towards Jock in withdrawing illegally some privileges."

Foreign Affairs Minister Bob Carr says the Government will investigate whether the decision can be appealed.

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