Prime Minister John Howard has ordered an inquiry into a claim that Australia was warned about an imminent attack just before the bombings on Bali on 12 October.

I don't know the basis of that report John Howard

Saturday's Sydney Morning Herald quotes an unnamed Western diplomat based in Washington, DC, as saying a specific warning was issued that the Jemaah Islamiah (JI) group planned a bombing to coincide with the first anniversary of the war against terror in Afghanistan on 7 October.

Mr Howard said on Saturday that he had not received such a warning before the attacks which killed nearly 200 people, more than a third of them Australians.

The bombs struck a much-loved holiday resort

"There was no specific warning regarding the Bali bombing and I don't know the basis of that report," he said in Melbourne.

"But I will naturally have some inquiries made about it," he added.

Australia's Attorney-General, Daryl Williams, also rejected the newspaper report on Saturday:

"Following today's report I have gone back to the agencies to check this advice and they have again confirmed that Australia had no prior warning of the Bali attack," he said in a statement.

'Weak points'

According to the Sydney Morning Herald's source, who was quoted by its Washington correspondent, "explicit warnings" of a JI attack were issued to Australia in the run-up to the Bali bombings

"We knew it was going to be in Indonesia and involve the region," the diplomat said. "It was very specifically from JI."

Warnings of plans to attack "weak points" were passed on to Western embassies in South-East Asia, the source added.

At least 65 Australians were killed in the attacks on the Indonesian island, which came on a Saturday when the nightclubs in Bali were crowded with young tourists. Twenty are still listed as missing.

Mr Howard also said on Saturday that he was taking seriously a warning issued by the United States on Friday of a new al-Qaeda attack on US interests.

"We're just living in an entirely different environment," he said.

"Although the level of threat in Australia is not as high as it is in the US, it is now much higher than it was before 12 October and it is likely to remain so for an indefinite period of time."