Surayud said three parties - his government, the Council for National Security (CNS) and Thaksin - would have to work out what Thaksin could do after returning to the capital.

The prime minister addressed the Thaksin issue as part of the government's explanation for last week's diplomatic spat with Singapore over Thaksin's visit to the citystate.

The government had to retaliate by suspending a highlevel bilateral meeting because Singaporean authorities ignored its repeated protests against the private meeting between Thaksin and Singaporean Deputy Prime Minister S Jayakuma, he said.

"Thaksin has unresolved political issues and we had expressed our concerns about him in a straightforward and tactful manner, but Singapore acted as if its ties with us are a secondary issue," he said.

CNS chairman General Sonthi Boonyaratglin said he would have to talk with Surayud first before giving his view on letting Thaksin return.

"I should study Surayud's remarks and talk with him, otherwise my hasty comments might be misleading," he said, adding that no mention was made about Thaksin's future when he met with Surayud on Friday.

He also played down speculation that the government was giving the green light for Thaksin to give up his exile.

"Domestic security must be reviewed before any decision will be made about Thaksin," he said.

Foreign Minister Nitya Pibulsonggram said it was true that Thaksin has been trying to hire a lobbying firm in the United States for the past few months.

"It remains to be seen how Thaksin will channel his lobbying efforts," Nitya said, adding that he not detected any move by Thaksin to apply for political asylum.

He saw no justification for Thaksin seeking a safe haven abroad at this juncture.

The Nation