The Vatican is believed to be holding talks with Saudi authorities over opening the first Roman Catholic church in the Islamic kingdom, where Christian worship is banned and even to possess a Bible, rosary or crucifix is an offence.

The disclosure came the day after the first Catholic church in Qatar was inaugurated in a service attended by 15,000 people and conducted by a senior Vatican official.

The Vatican and Saudi Arabia do not have diplomatic relations. However, Archbishop Paul-Mounged El-Hachem, the Papal Nuncio to Qatar, Kuwait, the UAE, Yemen and Bahrain, who attended the Doha inauguration, said that moves towards diplomatic ties were under way after an unprecedented visit to the Vatican last November by King Abdullah. This would involve negotiations for the “authorisation of the building of Catholic churches” in Saudi Arabia, he said.

The move would amount to a potential revolution in Christian-Muslim relations, since Saudi Arabia adheres to a hardline Wahhabi version of Sunni Islam and is home to Mecca and Medina, the most holy sites of the religion. No faith other than Islam may be practised.

Father Federico Lombardi, the Vatican spokesman, said that he could not confirm that the two sides were in negotiations. However, he added: “If, as we hope, we reach an agreement authorising the construction of the first church in Saudi Arabia, it will be a step of historic importance.”

Saudi religious police search the homes of Christians regularly; even private prayer services are forbidden in practice. Foreign workers have to observe Ramadan but are not allowed to celebrate Christmas or Easter.

La Stampa, the Italian daily, said that the talks would have been “unthinkable” until recently. The way was paved by King Abdullah's talks with the Pope and by the recent setting up of a permanent Catholic-Muslim forum to repair relations between the two faiths after the Pope's controversial remarks on Islam at the University of Regensburg in 2006.

The Pope said that his apparent reference to Islam as inherently violent had been misunderstood and he made amends by praying at the Blue Mosque in Istanbul soon afterwards.

Of the Saudi Arabian population, 94 per cent are Muslim and less than 4 per cent - nearly a million people - Christian, nearly all of them foreign workers. The last Christian priest was expelled from Saudi Arabia in 1985.

Qtar, which hopes to bid to host the Olympic Games in 2016, has approved five churches for other Christian denominations, including the Anglican Communion.

Land of one faith

— Saudi laws do not recognise or protect freedom of religion. Non- nationals are severely restricted in practising different faiths

— Missionaries are banned and face imprisonment if caught. Sunni Muslims face severe repercussions from the Mutawwain, or religious police, for breaking Muslim law

— The official policy of allowing non-Muslims to worship freely at home is not reliably enforced

— In the courts, once fault is determined, a Muslim receives all of the amount of compensation determined, a Jew or Christian half, and all others a sixteenth

Sources: US State Department; Conference of Catholic Bishops

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