The New South Wales health department has not ruled out sacking those responsiblie for the disappearance of a baby's body from Blacktown Hospital, in Sydney.

An investigation will be held into the girl?s disappearance as her parents were still to be told how the tragedy occurred.

The girl was stillborn in the back of an ambulance on the way to the hospital on May 13 after her mother went into permature labor at 28 weeks.

The girl's parents named her Angelina and spent time with the girl.

The body was taken away by hospital staff after the mother fell asleep.

It is unclear what then happend to the girl's body , but the mistake was not discovered untill a week later when a priest arrived to bless the baby's body.

NSW Health Minister John Hatzistergos said the case was a tragedy.  "It can only be described as a serious mistake.

Opposition health spokeswoman Jillian Skinner said : "its bad enough to lose a baby, it's terrible that the baby's missing, it's a dam disgrace that the parents are being left being the dark."