from ABC News

Australian researchers believe they are closer to developing a simpler, more effective treatment for one of the major underlying causes of type 2 diabetes.

The scientists at Sydney's Garvan Insititute say their discovery is a major step forward in the treatment of the disease, which affects about 7 per cent of Australia's population.

The team has identified an active enzyme in diabetics that blocks the availability of insulin, which is a hormone that helps the pancreas convert blood-sugar into energy.

Current treatments try to control insulin levels but do not address the reasons why insulin production is failing.

But the Sydney researchers say their findings could lead to a drug that could target the enzyme, known as PKCepsilon, and allow normal insulin production.

In their study, they used genetically modified mice to observe the link between an oversupply of fat and type 2 diabetes.

The team found mice without the enzyme did not develop diabetes, despite gaining weight on a high-fat diet.

In a statement, Garvan Institute researcher Dr Carsten Schmitz-Peiffer says the discovery is groundbreaking.

"What this tells us is that we will be able to protect people at high risk of developing diabetes from losing the ability to produce insulin ..." he said.

"It's like slotting in a critical part of a jigsaw puzzle, a part that suddenly makes the whole picture much clearer."

Around 200 million people worldwide suffer from type 2 diabetes, which is often linked to obesity.