An Australian man deported from Malaysia had been mixing with foreigners with ties to Al-Qaeda and has a brother who was convicted of a major terror offence, a report said today.

The Australian newspaper said the man, who was not named for legal reasons, was among a growing number of nationals travelling overseas, including to Yemen, for "terrorism-related purposes".

It said the man was deported after being detained by Malaysian authorities in October 2009 and that the Australian spy agency ASIO had requested his passport be cancelled on security grounds.

The paper said it was unclear what the man was alleged to have done in Malaysia, but that a source linked to the investigation said he had met with a small group of foreigners in Kuala Lumpur believed to have links to Al-Qaeda.

"He was mixing there with a few Al-Qaeda guys... they want to contact each other," the source told The Australian , adding that the group included two Yemenis, a Dane, a Briton, and a US citizen. "They want to regroup in KL."

Parcel bombs

It was reported that the man had spent some time in Yemen, which is under the spotlight after parcel bombs posted from the Arabian Peninsula's poorest nation were discovered in Britain and Dubai bound for the US over the weekend.

Australia last month raised its travel warning for Yemen to the highest possible level, saying there was a "very high threat of terrorist attack" in that country and urging nationals not to travel there.

Counter-terrorism officials have reportedly been monitoring telephone and email communications to the country since at least the beginning of this year, targeting in particular a militant group led by wanted cleric Anwar al-Awlaki.

Australians "engaged and involved" with the Awlaki's group were "absolutely at the heart" of investigations, a source told The Australian .

Al-Awlaki is a radical Yemeni-US cleric whom Washington considers to be a key leader of Al-Qaeda in the Arabian Peninsula and a dangerous "terrorist".

According to The Australian , counter-terrorism officials are considering placing sanctions, such as a loss of tax breaks normally afforded to religious bodies, on Muslim clerics who promote Awlaki's religious teachings.

- AFP