Prime Minister Dr Mahathir Mohamad on Friday warned Australia against acting as a sheriff in Malaysia, saying it will be dealt with as a terrorist if it did so.

"I can assure Australia that if it acts as a sheriff in this country, it will be treated as a terrorist and dealt with as a terrorist," he said in a news conference at the end of a meeting of Islamic nations here.

The outspoken Southeast Asian leader was reacting to a statement by US President George W Bush who hailed Australia as America's "sheriff" in Asia.

A difference as sheriff

Bush has told an Australian newspaper that Washington does not see Australia as its deputy sheriff in the region.

"We don't see it as a deputy sheriff, we see it as a sheriff - there's a difference," Bush said in an interview with The Australian ahead of his Asian tour to attend an Asia-Pacific leaders' summit in Bangkok.

Canberra has been trying to overcome Asian anger over a 1999 comment by Howard describing Australia as the United States' "deputy sheriff" in the Asian area.

Howard has been one of Bush's strongest supporters and sent in troops during the Iraq invasion this year.

Mahathir sarcastically noted that Australia has been promoted from being a deputy sheriff to a sheriff. - AFP