The $120,000 grant comes after three years of research into the molecular biology and genetics of the wombat mite.

According to Wombat Rescue Tasmania, mange is caused by Sarcoptes Scabiei- a microscopic parasitic mite that causes scabies in humans and mange in dogs.

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The disease severely affects wombats and is the biggest threat to their survival, as it is a terminal diagnosis unless treated.

UniSC researcher and project lead Kate Mounsey said there was optimism about the success of repurposing a drug currently used to control fleas and ticks to treat infected wombats.

"More evidence is needed to assess the dosage, delivery, target activity in the mite, and ecological impact of the drug," Dr Mounsey said.

She said participating in fieldwork had shown them the severe distress of infected wombats and the challenges faced by wildlife carers trying to treat the animals in the wild.

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"We are working to better understand the genetics of the drug receptor genes in the scabies mite and their specific interactions with current treatments," she said.

Tasmania Zoo zookeeper Riley Lowe said in Tasmania, less than 5 per cent of wombats had mange.

"Obviously there are higher rates in some areas compared to others, but overall Tasmania has a relatively low percentage of mange compared to the mainland," Mr Lowe said.

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He said the mange itself didn't kill the wombat, but because it irritates their skin, the bacteria from their paws led to an infection that killed them.

Currently the best way to treat mange involved pouring a cattle ecto-parasite treatment that had to be poured on its back.

"Obviously, when you're working with wild wombats, that's something that's really difficult because you have to either trap it or there's special mechanisms that they can set up at the front of the burrow as the wombat comes out the burrow, there's a cup that pours on their back."

Dr Mounsey said wombats were iconic Australian animals, and it was terrible to see them suffering.

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