Thailand's army-installed Prime Minister Surayud Chulanont today said that Malaysia had helped the kingdom make some progress in opening talks with Islamic separatists along their shared border.

"There was progress at the operational level, but I cannot disclose any details. However, we will expand cooperation with Malaysia into other possible areas," Surayud told reporters.

The premier also insisted that the unrest had not turned southern Thailand into a haven for international terrorists.

"I want to offer my assurances that there is no movement of international terrorist groups on our soil," he said.

Surayud said he doubted the unrest in southern Thailand would end this year, but insisted that his government had succeeded in winning the support of Muslim countries for its effort to bring peace to the region.

"All Muslim countries now have a good understanding of what we are doing," he said.

The conflict strained relations between Buddhist Thailand and Muslim Malaysia during the administration of ousted Thai premier Thaksin Shinawatra, who accused the kingdom's southern neighbour of sheltering the rebels.

Worsening violence

After Thaksin was deposed in a coup in September, Surayud made mending relations and finding a peaceful way to end the conflict a priority.

Despite some success on the diplomatic front, violence has worsened since the coup and until now there was no indication that rebels had taken up Surayud's offer of talks.

Government officials have long admitted that they do not know exactly who they should talk to. The insurgents never claim responsibility for their attacks or make any specific demands.

Older generations of rebel leaders have expressed a willingness to talk, but have shown little control over the young fighters on the ground.

Some 2,000 people have been killed since the latest unrest broke out three years ago in the Muslim-majority provinces of southern Thailand.