Mahathir helped arrange talks been old-guard leaders of rebel groups known to operate in the region. The talks failed to produce a cease-fire in the 32-month-long insurgency.

"If the new government follows his initiative and continues dialogue, I believe we will have good signs for the restoration of peace in the future," said Ahmed Somboon Bualuang, a former member of the now defunct National Reconciliation Commission.

Representatives for Mahathir confirmed yesterday the role played by the retired prime minister in dialogue between separatist leaders and senior security officials on Malaysia's northern island resort of Langkawi.

The talks were said to have been conducted with the knowledge of the Thai elite.

New talks reportedly could begin next month in Singapore. Mahathir would unlikely be involved.

"My mission is complete. It is now up to the Thai authorities to proceed with follow-up action," Mahathir was quoted as saying in the Star newspaper.

Former Yala Islamic Committee deputy Nimu Makajeh said he supported dialogue with militants but the government should not do anything to endorse the status of insurgents.

"The government should dispatch somebody to listen to their views," he said, "but we should not negotiate with them."

Nimanase Sama-aree, Young Muslim Association of Thailand president, said the military-backed government should advance efforts by coup leader Sonthi Boonyaratglin to hold "informal" discussions with insurgent leaders.

"We still have no idea who exactly is behind this violence of the past two years, so it's better to keep an open mind and listen to everyone," he said.

Following the coup the country's leaders still have no clear policy for containing the insurgency that has claimed as many as 1,700 lives since early 2004.

One idea floated in past days was to reactivate the Southern Border Province Administrative Centre dissolved by the first Thaksin Shinawatra government in 2002.