Dhaka - The United States government believes that Islamist militancy is still a major concern in Bangladesh, the US ambassador in Dhaka said Sunday.

"We do have disturbing indications. There continues to be a threat in Bangladesh and my government does believe that there is a threat," James F Moriarty told reporters in the South Asian country.

Referring to the recent seizure of arms caches in remote villages and the capture of members of militant outfits, the ambassador said these demonstrate that terrorism remains a concern in Bangladesh.

The country was rocked by a series of terrorist attacks in past years until the top six leaders of Jamaatul Mujahideen Bangladesh, the group which claimed responsibility for the major attacks, were captured and put on trial. They were found guilty and executed in March 2007.

Intelligence agencies recently reported that the terrorist outfits in Bangladesh have started regrouping.

The US envoy said the United States will continue to work closely with Bangladesh.