E. Kousalyan, the political wing leader of the Liberation Tigers of Tamil Eelam (LTTE) in the eastern region was ambushed as his convoy was travelling to the coastal district of Batticaloa, military and Tamil Tiger sources said.

Four others, including two policemen escorting Kousalyan were seriously wounded in the ensuing gunbattle, the official said from Batticaloa, 300 kilometres (190 miles) east of Colombo.

Military officials said they suspected the attack was carried out by a breakaway faction of the Tamil Tigers led by former number two in the LTTE, V. Muralitharan, better known as Karuna.

However, the pro-rebel Tamilnet.com website said Tigers blamed the attack on, "paramilitary operatives working with the Sri Lankan armed forces."

"Mr. Kousalyan is the most senior LTTE official to be killed after Colombo and Tigers signed a ceasefire in February 2002," the Tamilnet said.

He was returning from the eastern village of Vanni after discussing plans for expanding Tsunami rehabiltation in the east, the website said.

Military officials denied they were to blame for the attack and said they were not aware Kouslayan was travelling in the region at the time. Senior Tigers are often given official security for travelling through government-held areas.

"A gunbattle had lasted about 10 minutes," a military official said. "The attack was in the Poonani area. It looks like the attackers had followed the vehicle and then opened fire at Poonani.

"The car in which the attackers travelled had overtaken the van of the Tiger leaders and then opened fire."

A former Tamil legislator, Chandra Nehru, was among those who escaped with critical injuries, military officials said.

Tamil sources said the attack was the biggest loss for the LTTE since the unprecedented split in March 2004.

Three days earlier, an LTTE political leader was shot dead and another wounded, with the military saying that it could be the work of Karuna's faction which led the split.

The main LTTE has since tried to regain its hold on the multi-ethnic eastern region and accused the government of supporting Karuna's faction, a claim denied by the security forces.

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