Mythical Roman 'She-Wolf' Cave Found

Augustus, who ruled from the late 1st century B.C. to his death in the year 14, was keen on being close to the places of Rome's mythical foundation and used the city's religious traditions to bolster his hold on power, Iacopi said.

"The Lupercale must have had an important role in Augustus' policies," she said. "He saw himself as a new Romulus."

Andrea Carandini, a professor of archaeology at Rome's La Sapienza University and an expert on the Palatine, said the grotto is almost certainly the "Lupercale."

"The chances that it's not are minimal," said Carandini, who did not take part in the dig. "It's one of the greatest discoveries ever made."

Most of the sanctuary is filled with earth, but laser scans allowed experts to estimate that the circular structure has a height of 26 feet and a diameter of 24 feet, Croci said.

Archaeologists at the news conference were divided on how to gain access to the "Lupercale."

Iacopi said a new dig would start soon to find the grotto's original entrance at the bottom of the hill. Carandini suggested enlarging the hole at the top through which probes have been lowered so far, saying that burrowing at the base of the hill could disturb the foundations of other ruins.

The Palatine is honeycombed with palaces and other ancient monuments, from the 8th-century B.C. remains of Rome's first fledgling huts to a medieval fortress and Renaissance villas. But the remains are fragile and plagued by collapses, leaving more than half of the hill, including Augustus' palace, closed to the public.

Culture Minister Francesco Rutelli said the first area to benefit from an extensive, $17.5 million restoration of the hills' ruins will be Augustus' palace, scheduled to reopen in February after being closed for decades.