PORTUGUESE police have intercepted emails sent by missing British toddler Madeleine McCann's parents, and have bugged their phones.

The revelation has prompted friends who were with the McCanns on the night of Maddie's disappearance to condemn an apparent smear campaign against the distraught couple.

The seven friends dining with Kate and Gerry McCann at a Portuguese holiday resort on May 3 have also been drawn into the whisper campaign.

Portuguese newspapers have run reports Maddie died inside the apartment and was not abducted - and that the McCanns or their friends might be responsible.

The media reports have alleged intercepted phone and email conversations between the couple and their friends have offered new lines of investigation.

Friend Rachel Oldfield, 36, said police appeared to be leaking information to the local press.

"It is very hurtful and all rather ludicrous," she said.

"They are throwing mud at us and we are not able to defend ourselves. It does not help to find Madeleine.

"I think there are some leaks coming from the police but a lot of what we have read recently has been completely untrue."

Ms Oldfield said the friends were not able to say as much as they would like in their defence because of strict judicial secrecy laws in Portugal.

Each of the dining companions has been questioned about their movements on the night Maddie disappeared.

Police statements leaked to a Portuguese magazine suggest that Mr McCann checked his children at 9.05pm, and that 10 minutes after he returned to the table, friend Jane Tanner went to check on them again.

Ms McCann raised the alarm that Maddie was missing at 10pm.

Portuguese media have claimed there are "discrepancies" in the times the group gave police.

"If everything happened as the English holidaymakers say, in terms of their checking the children, it would be impossible for a kidnap to have taken place," one newspaper wrote.

But Ms Oldfield said: "There would only be a small window for somebody to do it (abduct Maddie) but presumably if somebody had been watching our movements then it would have been possible."

Another of the dining companions, Fiona Payne, 34, would not comment.

"We don't want to say anything, or do anything, that could end up compromising the police investigation," she said.

Mr McCann said yesterday he and his wife would continue to assist police in any way possible.

"We hope there is a breakthrough very soon."