SYDNEY (AFP) May 22, 2003 - The United States has asked Australia to provide bases for US forces and aircraft as part of a plan to combat terrorism in Southeast Asia, The Australian newspaper reported Thursday.

The US approach appeared related to concerns in Washington over threats to the stability of neighboring Indonesia, the world's most populous Muslim state, from radical Islamic groups and separatist movements.

The office of Defence Minister Robert Hill refused to confirm the story.

"The minister said there has been no approaches to either him or the Prime Minister on a political level from the US on this issue," Hill spokeswoman Catherine Fitzpatrick told AFP.

"He doesn't know where the story has come from and it is the kind of issue that would require a political approach if that was the US's thinking."

Foreign Minister Alexander Downer said in a television interview that he was not aware if Washington had asked to put bases in the Australia.

"They haven't, not to my knowledge, and I'm in touch with the Americans fairly constantly," he said.

Quoting unnamed sources, the Australian said the new military cooperation being considered included deploying US F-16 fighters for extended periods at an airbase in Australia's Northern Territory and stationing up to 5,000 US Marines at an Australian army base.

Australia and the United States already jointly operate a major electronic intelligence-gathering facility at Pine Gap in central Australia and conduct a number of military exchange and training programs.

US warships also regularly use Australian bases for resupply and rest stops.

Australia was one of US President George W Bush's staunchest allies in the war on iraq, committing some 2,000 troops to combat there.

US troops have not had a large presence in Australia since the Second World War.