A housewife who caught her neighbour having an affair with her husband was shocked by what the woman had to say.

The neighbour offered to swap husbands with her in what was believed to be the "best proposal" for the two couples from Sibu, Sarawak.

"She asked me to have her husband while she continues her relationship with my husband," the mother of two, who only wanted to be identified as Kiew, told police.

Kiew, in her 30s, said she has two sons, aged seven and 11, while the neighbour has three children - aged three, 10 and 12.

Police sources said Kiew's husband had demanded a divorce when he found out that his wife had discovered that he was sleeping with the neighbour.

She rejected the husband's demand despite him threatening to stop servicing the loan of the house they were currently staying at.

The husband also said he would leave Kiew to be with the neighbour, adding he would bring along their children, said a source.

Kiew lodged a police report alleging that her husband had sex with her neighbour on Jan 21.

She also accused the neighbour of threatening to kill herself if Kiew's husband ended their affair.

The same day, the neighbour also lodged a report claiming that she was assaulted by three women from next door.

A week later, Kiew lodged another police report that her husband had intended to go to school to take away their sons.

She asked for the police's help to stop her husband from taking the children away.

Her husband has since left home.

Sibu OCPD Asst Comm Shafie Ismail confirmed receiving the reports.