Malaysia and the United States will hold a joint naval and land exercise in the South China Sea aimed at bolstering military ties, said the US embassy today.

"Malaysian soldiers and sailors will be joining with their US counterparts this week for the annual Cooperation Afloat Readiness and Training (Carat) exercises," it said in a statement.

This year's exercise off Pahang state would feature simulated landings with Malaysian troops riding US amphibious landing craft, it said.

Guided-missile destroyer the USS Russell is participating in the exercise under task group commander Captain Buzz Little. They will remain in Malaysia until the weekend.

Angry dispute

"The Carat mission helps enhance regional cooperation, increase interoperability and builds stronger friendship between the US and Malaysia.

"It also strengthens professional skills at every level for the military personnel involved," the embassy said.

Last month Malaysia and the United States mended fences after an angry dispute over protecting international shipping against terrorist attacks in the vital Malacca Straits.

Malaysia reacted strongly to reports that Washington was considering deploying marines in the straits to counter terrorist threats in the narrow waterway, which carries a third of world trade, saying this would infringe on its sovereignty.

Malaysia angrily dismissed the idea, saying US forces in the area would attract terrorism rather than repel attacks.