GAMONAL, Spain (Reuters) -- On a hill outside Gamonal in central Spain, a cross marks the spot where a young boy was believed to be eaten by wolves about 90 years ago.

Folklore or not, hatred of the wolf and its status as vermin caused Spain's Iberian wolf population to plunge to about 400 by the late 1960s.

But a 1970 hunting law, human exodus from the countryside and greater ecological awareness among Spaniards have helped boost the wolf population today to between 1,500 and 2,500 -- the biggest in Western Europe.

"There were no signs of the wolf here for about 50 years and then suddenly in 2000 we had a pack," said Rafael Ruiz, head of the wildlife department in Guadalajara province, about an hour's drive from Madrid.

Despite greater awareness, hostility lingers in many country areas.

Sightings of wolves eating the bodies of those killed in the Spanish Civil War almost certainly remain engraved in the psyche of many people from that generation, according to ecologist Carlos Blanco.

The most recent recorded fatal attack on a human was in 1974, when a wolf killed two children in Galicia. The animal was quickly hunted. Experts say wild dogs are to blame for a lot of damage said to be caused by their canine cousins.

"Even if that sad case in Galicia was a wolf, then we have probably just two deaths in 50 years. Many more die from dog attacks," said Carlos Sanz, who runs a wolf refuge in Chapineria, 50 km (30 miles) southwest of Madrid.

Experts say the wolf shies away from contact with humans, although not all farmers would agree.

"Although the wolves around here attack at night, they don't seem to be afraid of humans, and you can see them occasionally during the day," said Aldina Murias, a farmer in the northern Asturias region. **** Cattle Attacks****

The wolf revival has surprised many farmers who had become used to leaving animals unprotected, making them easy prey as the wolf moves from its stronghold in northern Castille-Leon region, home to up to half of Spain's wolf population.

"It's terrible to see. They grabbed the foal by the throat. I managed to distract them but there was nothing I could do to save the animal," said Murias, adding he has lost several foals and calves to wolf attacks.

Further south, official data shows 1,000 cattle were either killed, injured or disappeared in 59 attacks in 2001 in Guadalajara, in Castille-La Mancha region.

The attacks have since fallen due to a combination of stealth hunting, wolves seeking new territories or because farmers, helped by subsidies, have reinforced pens or bought mastiff dogs to protect herds, officials say. For some ecologists, the drop in attacks highlights the precarious situation of the wolf. Ringed in by roads and hunting estates, the species in the south of the country is believed to be almost extinct. **** Hunting ****

The 1970 national hunting law laid the base for the wolf's recovery. From then on it was considered a controlled hunting species and not vermin.

Then a 1992 European directive protected the wolf from hunters south of the Duero, a river that cuts across north-central Spain.

In Castille-Leon, a region split by the Duero, native wolf populations rose, forcing many of the animals to other areas in search of food.

While the species is protected south of the river, it can be legally hunted to the north, where the right to enter a reserve and hunt one wolf costs 2,885 euros ($3,352).

"Like in most things though, there's a parallel black market. The head of a wolf is a prized trophy," said Theo Uberhuber, coordinator of green group Ecologistas En Accion.