The finds came as the United Nations refugee agency started to repatriate refugees from Albania. At the peak of the programme, the UNHCR expects to move up to 2,000 people a day back to Kosovo from the refugee camps in Albania.

German troops found the mass graves around the village of Celine, northwest of Velika Krusa.

Nearly 120 bodies were thought to be buried in one spot, while others were found lying in the open or with limbs protruding from shallow graves.

All are said to be Kosovo Albanians, allegedly murdered by Serb forces during the bombing campaign.

The BBC's Jon Leyne: "What was once a little rural village, has been all but destoyed"

Residents say the Serbs attacked at the end of March.

The area is said to have been hit with particular ferocity by the Serbs. The nearest town - Velika Krusa - is where more than 100 civilians are believed to have been murdered by Serbs, in an incident which forms part of the war crimes indictment against President Milosevic.

Refugee return

The BBC's John McIntyre: "As many as 140 bodies could be involved"

The UNHCR has moved 500 refugees from the Mjeda transit camp in Albania. They had previously been in camps 50km (30 miles) south of the capital, Tirana.

Initially the agency only intends to return those refugees from areas in Kosovo that are considered secure, such as Pristina, and the southern towns of Prizren and Urosevac.

More than half a million Kosovo Albanian refugees have returned to the province since the end of Nato's bombing campaign, the UNHCR said on Thursday.

(Click here to see a map showing refugee movements)

The agency said that 256,300 refugees were still in the countries bordering Kosovo.

It added that a total of 71,400 Serbs had fled Kosovo, 50,000 towards Serbia and 21,400 to Montenegro.

Duncan Kennedy in Celine reports on the latest mass grave

Earlier on Thursday several hundred Kosovo Albanians protested in Pristina, demanding help to trace relatives who they fear are being held in prisons in Serbia.

They believe that up to 1,500 prisoners may have been taken from Kosovo to Serbia when Belgrade's troops withdrew.

• Throwing out the Serbs
• UN moves to secure Kosovo
• Montenegro denounces 'stupid' army blockade
• Eyewitness: A mixed peace