Scientists have come up with a drug known as BTA798 that works by latching onto the cold-causing rhinovirus to prevent it breaking into the body's cells.
British volunteers are currently testing the drug that holds promise to clear up the sniffles within hours and prevent life-threatening infections in asthma and cystic-fibrosis sufferers.
Peter Cook, Chief Executive of Victoria-based drug development company Biota said, "This could be the world's first anti-viral treatment for the human rhinovirus. A safe and effective treatment for the virus will be a major breakthrough."
The drug killed large quantities of cold virus within a couple of hours in laboratory tests.
Finding a cold cure has proved tricky till now because researchers have been hampered by how many strains of the cold virus exist. According to the scientists the new drug has been built to defeat numerous strains of the virus.
The researchers claimed that the drug could hit the market in five years' time if it is proved successful.