The advent of a new Thai government has created a "window of opportunity" to resolve the bloody two-year insurgency in the country's south, said deputy Prime Minister Najib Razak today.

"We have always been hopeful of a political settlement in southern Thailand. This is a good window of opportunity for the new government to take up a new initiative with respect to the problems in the south," said Najib Razak.

"Our position is that we welcome any political settlement and we hope that there will be peace in the south and that will be achieved in the shortest possible time," he told reporters.

Thailand's new administration, installed after a September coup, has announced plans for talks with two insurgent groups early next month, and rebel leaders have reportedly said they would like to hold the talks in Malaysia.

Former Malaysian premier Dr Mahathir Mohamad's office has revealed that he brokered talks between Thai officials and Muslim groups on the Malaysian island of Langkawi late last year, in an attempt to establish a ceasefire.

However, Najib indicated Malaysia had not been approached to hold the talks.

"Only if we are invited to, then we might consider it," he said when asked if it would be willing.

Malaysia shares a border with southern Thailand, and people living in the two regions have close cultural and social ties.

The region was an independent, ethnic Malay sultanate until Thailand annexed it a century ago. Separatist violence has erupted periodically ever since.