The government today denied there were terrorist cells in the country after Indonesian officials fingered Malaysian terror suspects for another series of deadly blasts on the Indonesian island of Bali.

"There are no terrorists' cells actively operating in Malaysia as far as the government is concerned," defence minister Najib Tun Razak was quoted as saying by the official Bernama news agency.

Indonesian officials have said Saturday's blasts, which killed at least 26 people and injured more than 100, bore the hallmarks of Malaysians Azahari Husin and Noordin Mohammad of the Jemaah Islamiah (JI) extremist group.

But Najib, who is also the country's deputy prime minister, said the threat of terrorism was under control in Malaysia.

"Probably, this blast will raise security concerns in this region. Nevertheless, the Malaysian government can give an assurance such a threat is under control in Malaysia," he said.

Najib said the country was prepared to extend all forms of cooperation to Jakarta to deal with terrorist threats.

"The existing bilateral cooperation between Kuala Lumpur and Jakarta should continue and prompt action must be taken anywhere terrorists are detected."

Accusations without proof

Prime Minister Abdullah Ahmad Badawi extended his condolences to Indonesia but also said making accusations without proof could create more problems, Bernama reported.

"I hope the Indonesian authorities will act promptly to find out the root causes for the blast," he said.

British-trained engineer Azahari ( left ) and his compatriot Noordin ( right ) are among the most dangerous JI militants at large and are believed to have played key roles in previous deadly attacks in Indonesia.

Saturday's blasts occured just days before the third anniversary of nightclub attacks which killed 202 people on the Indonesian resort island.

Malaysia is currently holding more than 80 suspected Islamic militants in detention, many of whom are allegedly JI members.