A convicted pedophile has angrily rejected suggestions he abducted Daniel Morcombe while giving evidence at the trial of the boy’s accused killer.

A convicted pedophile has denied he jokingly referred to Daniel Morcombe as “Christmas cake” and said the teen was “in the forest” during a conversation with a prison inmate.

Convicted child sex abuser Douglas Jackway, 37, angrily rejected suggestions he abducted the Sunshine Coast schoolboy when he appeared as a witness in the trial of Daniel’s accused killer Brett Peter Cowan.

The Brisbane Supreme Court heard Jackway, giving evidence via video link, has convictions for the brutal sexual assault of a boy and for raping his sister.

In cross examination, Cowan’s barrister suggested Jackway had discussed Daniel Morcombe with a fellow prison inmate in 2006.

Defence barrister Angus Edwards suggested the witness had laughed about the Morcombe family and said they should “just get over it”.

“I suggest that you said to (the inmate) `Daniel is in the forest’ … and I suggest that you said to him ‘he is no one’s Christmas cake no more’,” Mr Edwards said.

“No, I never said something like that to him,” Mr Jackway replied.

Earlier the trial heard Jackway was released from prison one month before Daniel went missing from the side of a Sunshine Coast road on December 7, 2003.

He owned a blue 1980s model Commodore and had planned to stay with his sister on the Sunshine Coast on the night of December 7 for a court appearance the following day.

Multiple witnesses have told the court they saw an old blue sedan near a boy matching Daniel’s description around the time the teen vanished.

“Did you kill Daniel Morcombe?” Crown prosecutor Glen Cash asked Jackway.

“No I did not,” Jackway replied.

“Were you in any way involved in killing Daniel Morcombe?”

“No,” he replied.

Under cross examination Jackway said he had been in Ipswich, west of Brisbane, visiting his girlfriend and a friend on December 7.

He said Mr Edwards’ suggestion that he went on a drive alone between 11am and 4.30pm and returned in an agitated state was incorrect.

Jackway rejected claims he changed his version of events in subsequent police interviews and asked several friends to provide him with an alibi.

He also denied he told a prison inmate prior to his release that he would rape and kill a child and bury the body.

The witness became increasingly frustrated during the more than three hours of cross examination and verbally abused Mr Edwards several times.

“Who’s on trial here … what’s this got to do with this court case?” he said at one point.

Cowan, 44, has pleaded not guilty to murder, indecent treatment of a child and interference with a corpse.

The trial continues.