"We continue to receive reports that terrorists may be planning attacks against a range of targets, including places frequented by foreigners," the Australian Embassy's advisory said.

"Reports indicate possible bombing attacks at crowded places such as department stores, and Skytrain and subway stations in Bangkok on February 23," it said.

The statement pointed to the two small explosions on January 30 at the Rama Gardens Hotel and the Daily News, as well as the series of bombings in various locations in Bangkok on New Year's Eve that killed three and injured more than 30 others, including six foreigners.

It said further attacks could not be ruled out.

The Australian government also advised its citizens to reconsider any planned travel to Thailand's deep South.

 In Bangkok, Governor Apirak Kosayodhin instructed all 50 districts in the metropolitan area to remain alert, saying now is not the time to be complacent.

Apirak ordered all districts to take utmost precaution following last Sunday's incidents, when suspected insurgents launched coordinated arson and bombing attacks on about 50 locations - including soft targets that included karaoke bars, hotels, power stations and rubber factories - in the far South.

At least seven people died in attacks on Sunday and Monday.

A senior officer at the National Intelligence Agency said the attacks may have put a "psychological dent" in the general public, but the choice of targets and the nature of the attacks illustrate that the militants are not doing anything different from what they have been doing over the past two years.

While soft targets were hit, said the officer, the militants had avoided areas with high concentrations of people, especially locations where people were gathering to celebrate the start of the Year of the Pig in the Chinese lunar calendar.

But the recent heightened alert came after Thursday's meeting in Parliament, when Defence Minister General Boonrawd Somtas told the National Legislative Assembly that the militants had infiltrated universities in Bangkok, which could be used as a launching pad for assaults.

The Police Special Branch said earlier it was closely monitoring southern Muslim student groups in Bangkok.

"Insurgent leaders have been trained abroad and they have given training to youngsters in the three border provinces. Training begins in schools," he told legislators. He said many militants had been recruited when they were 12, and are now in their mid-20s.

But Prime Minister Surayud Chulanont said possible insurgent strikes in Bangkok were still a matter of "speculation".

Interior Minister Aree Wongsearaya said that although Bangkok should be on the alert for terrorism, he did not anticipate any imminent attacks.

Surayud said the southern violence was his government's top priority and admitted there had not been much progress since he took charge in October.

He said possible peace talks with the separatist movements were being discussed, but Thai intelligence sources said that so far none of the militants on the ground had surfaced to take credit for any attacks - much less wanting to talk to the Thai government.

At most, according to these officials, Kuala Lumpur is expected to help facilitate a meeting with exiled leaders from long-standing separatist organisations who may or may not be behind the spate of violence in the Malay-speaking South.

In spite of gestures of goodwill from the Surayud government towards the region, violence continues to escalate.

"We won't see the results in three to four months, because the painful feelings of southern people over the past four to five years run deep. This is not easy to cure," he said.