Malaysian Prime Minister Abdullah Ahmad Badawi offered Saturday to do all he could to resolve a lingering row with Thailand over the flight of 131 Thai Muslims across the border.

"We want to help in any way we can," said Abdullah, who held a meeting with Thai Prime Minister Thaksin Shinawatra on the sidelines of the Asia Pacific Economic Cooperation summit in South Korea.

"Together we have to manage this situation," he said.

Bilateral ties have deteriorated since the group from the violence-plagued southern Thai province of Narathiwat crossed into Malaysia in August, saying they were fleeing separatist unrest, triggering a tussle over their fate.

"I will continue to have discussions and find out what is the best (solution). If we can agree to talk, that's very good indeed," he told journalists.

Security analysts have said the situation in southern Thailand, where 1,000 people have died in the unrest since January 2004, could spread and destabilise Southeast Asia if not managed properly.

"I like to see southern Thailand peaceful and stable," Abdullah said.