General Ryamizard Ryacudu said that while no firm measures were in place to hold the exercises, preparations would be made for manoeuvres involving armed forces of the 10-member Association of Southeast Asian Nations (ASEAN).

"We see that terrorism has become a bigger and bigger threat and it will never stop," he said after a meeting of ASEAN army chiefs here.

"It is a major concern and therefore the army must be prepared to deal with it by conducting exercises and exchange of information," he added.

Ryacudu said the format and timetable for the exercises would be agreed at a later date.

The army chief also stressed the need to avoid over-reaction, insisting that military force be reserved for tackling militants using "war" equipment such rockets and bombs.

Southeast Asia has witnessed its share of deadly terrorist assaults in recent years, culminating in the October 2002 attacks on Bali nightclubs in which 202 people died.

ASEAN military chiefs earlier discussed the threat of cross-border terrorism in the region -- an issue highlighted by bombers believed to have trained in the Philippines at camps run by the Al-Qaeda-linked Jemaah Islamiyah group.

Ryacudu said the army chiefs did not specifically discuss Jemaah Islamiyah, which is blamed for the Bali strikes and a series of other attacks across the region.

"It's a sensitive issue," he said.

Malaysia's army chief Mohamad Azumi said ASEAN army chiefs agreed to exchange intelligence on terrorism.

"We have agreed that we will be transparent. We'll keep each other informed... because intelligence is foremost," he said.

ASEAN groups, Brunei, Cambodia, Laos, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.