Australia fears attacks on two cities

SYDNEY, Thursday (Reuters) - An Australian government warning about a possible "terrorist threat" was prompted by fears that home-grown extremists were moving closer to attacks in Sydney and Melbourne, local media reported on Thursday.

Australian Prime Minister John Howard said he had received specific information about a possible "terrorist threat", but refused to give any details about the nature or location of the threat.

"The intelligence relates to home-grown terror suspects in the country's two biggest cities who are believed to be building the capability to mount an attack," the Australian newspaper reported.

The Sydney Morning Herald said the new intelligence did not reveal the precise location or timing of the attacks.

Australia has not lifted its terror alert warning from the present level of medium, and Howard said on Thursday the intelligence he had seen this week did not point to an imminent attack.

"It doesn't mean something is going to happen in the next few days," Howard told Australian radio. But he added that Australia could not be considered to be immune from a possible attack.