Oposition Islamic Party (PAS) today threatened to sue a Thai newspaper over allegations that it had instigated Muslims in southern Thailand to rebel against the government.

"PAS categorically deny that either PAS or its Youth wing is involved in instigating the Muslims of southern Thailand to rebel against the Thai government," PAS secretary-general Nasharuddin Mat Isa said in a statement.

Nasharuddin said the charges were "designed to tarnish our reputation" and demanded that the newspaper provide evidence that the party was involved in such activities.

Wrong newspaper cited

He erroneously identified the newspaper in question as the Bangkok Post . Another Thai English-language daily, The Nation , in fact carried the report.

A PAS official told AFP late Wednesday the party would check again on the source of the report and might issue another statement on Thursday.

A long-dormant separatist insurgency in Thailand's Muslim-majority south, bordering Malaysia's northernmost states, was re-ignited early this year with a series of raids, arson attacks and murders.