A Federal Government-ordered review into live sheep exports has recommended a major reduction in animals on ships bound for the Middle East during the hottest parts of the year.

The review was initiated this morning by Federal Agriculture Minister David Littleproud, after footage emerged of almost 2,500 sheep dying from heat stress during a trip to the Middle East.

As part of the review Mr Littleproud says the Government will introduce legislation which would punish exporters who break these export rules, with offending companies facing a fine of 4.2 million dollars.