Queensland Environment Minister Andrew Powell says putting down a crocodile in Birdsville in the state's far south-west is a last resort.

Locals spotted the croc in the Diamantina River last week and there is concern about how it will cope so far away from its usual habitat.

Mr Powell says it has been shown that freshwater crocodiles can stand relatively cold temperatures.

He says the department will look at relocation if there is concern about its welfare.

"We'd certainly have to look at the cost of these [options] - euthanasia would be a last resort," he said.

"[At] this stage we want to keep an eye on it, let it keep living in its natural habitat and if necessary relocate it - if [it was a] worst-case scenario we would look at euthanising it."

He says residents and visitors should not be concerned about the reptile because it is not dangerous to humans like the saltwater crocodile.

"I expect it to actually be a bit of a tourism drawcard at this stage," he said.

"Freshwater crocs are not like salties - they're not a threat to humans - they're fairly docile creatures and they have a fairly set diet.

"The same rules don't apply to freshwater crocodiles as saltwater crocodiles do, so it may prove to be a bit of a tourist boom for the area for this time of year."

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