Thailand's Prime Minister Surayud Chulanont today met with Malaysian leaders for talks expected to focus on the kingdom's Muslim insurgency, which Malaysia has said it is willing to help resolve.

Surayud, the military-backed premier installed after last month's coup, met with Prime Minister Abdullah Ahmad Badawi and Foreign Minister Syed Hamid Albar during the one-day visit, part of a tour of Southeast Asia.

"So far it has been positive in creating a new bilateral relationship," Syed Hamid said of contacts to date with the new Thai regime.

"I think the most important thing is maintaining peace and stability and security in the region," he told reporters before heading into the meeting.

The visit comes after another upsurge in violence in Thailand's Muslim-majority south, which erupted despite signs the new regime may seek a peaceful solution to the two-year rebellion that has killed more than 1,500.

The Thai government has said it hopes to hold talks with two insurgent groups early next month, and rebel leaders reportedly said they would like to hold the talks in Malaysia.

Syed Hamid said this week that his country was willing to play a " bigger role " in resolving the crisis.

Former premier Dr Mahathir Mohamad revealed recently that he brokered secret talks between Thai officials and Muslim groups in Langkawi late last year to try to establish a ceasefire.

Thai officials said this week that during the talks, Surayud will ask Malaysia to extradite top insurgent leaders believed to be hiding across the border - an extremely sensitive issue in Muslim-majority Malaysia.

Extradite and repatriate

Thai intelligence sources said Surayud would specifically ask Malaysia to track down and extradite key leaders of the separatist movement.

Surayud is also expected to ask Malaysia to repatriate 130 Thai Muslims who fled across the border more than a year ago, saying they left their country because of insecurity and fear of persecution by the Thai government.

Their flight triggered a diplomatic row between the neighbours and Malaysia has always insisted they will not be forced to return, particularly if their safety cannot be assured.

Surayud said last week that he had already discussed the insurgency with Malaysia's ambassador in Bangkok, who voiced optimism that joint cooperation could end the prolonged unrest.

Residents in Thailand's southernmost provinces are mostly ethnic Malay and Muslim, sharing more culturally with their neighbors across the border than with the rest of Buddhist Thailand.

The negotiator

Mahathir said according to reports today that the insurgents want to hold peace talks but are still waiting for a response from the government.

"I think they are at a stage where they want to talk, so they need a response from the government, but the actual terms - that will have to be negotiated by them," he told the New Straits Times .

Mahathir said the new Thai government was more conciliatory than that of former premier Thaksin Shinawatra, who was ousted last month.

He also said he was willing to continue as a negotiator in the crisis on Malaysia's doorstep.

"If people want me to play a role, I'm quite prepared but I'm not pushing myself," he said.

Three provinces along the southern border with Malaysia have been roiled by Islamic separatist violence and other unrest since January 2004.

The region was an ethnic Malay sultanate until Buddhist Thailand annexed it a century ago. Separatist unrest has simmered ever since, although organized border crime is also thought to play a part in the recent violence.

Last month's coup in Bangkok had sparked hopes for peace in the region after a Muslim army general led the ousting of Thaksin, who had been widely criticized for his heavy-handed response to the violence.