"We have plans to pull out on August 28, 2006 all Malaysian army troops deployed in East Timor after the unrest three months ago," Malaysian army chief Abdul Azis Zainal said according to local newspapers.

"This withdrawal is still being studied, whether to pull out part of the 500 personnel ... But what is clear is that part will be withdrawn in the intitial phase," he was quoted as saying by the Timor Post.

"Malaysian soldiers in the logistics unit will remain in Timor Leste to assist the 250 Malaysian police who still remain on duty in assuring security and stability," the Suara Timor Leste quoted him separately as saying.

Malaysia sent 209 soldiers to Timor to help restore order after widespread unrest that was triggered by a military rebellion in May. At least 21 people were killed in fighting between security factions and in ethnic street wars.

Kuala Lumpur also deployed police personnel on a six-month mission.

"I am glad that the situation is now calmer and I hope that in the future, the situation will remain like this," the army chief added.

The Malaysians were among some 3,200 international peacekeepers deployed to Dili amid the breakdown in law and order, mostly from Australia but also from New Zealand and Portugal.

Australia has already begun reducing its troop numbers, but will leave a force of around 2,000 in the tiny nation of one million people.

East Timor's Prime Minister Jose Ramos-Horta has appealed for a substantial UN-led police presence for the fledgling nation.