PHNOM PENH - CAMBODIA has appointed former Thai prime minister Thaksin Shinawatra economic adviser to premier Hun Sen, a Cambodian government statement said on Wednesday, adding to tensions between the countries.

'Thaksin has already been appointed by royal decree... as personal adviser to Cambodian Prime Minister Hun Sen and the adviser to the Cambodian government in charge of economy,' said the statement read on state television.

The appointment came almost two weeks after Mr Hun Sen riled neighbouring Thailand by offering safe haven to Thaksin, who was ousted in a bloodless coup in 2006 and is living abroad to avoid a jail term for corruption.

The statement went on to call charges against Thaksin 'politically motivated' and vowed not to extradite him if he 'decides to stay in Cambodia or travels in and out of Cambodia in order to fulfil his duties'.

Ties between Cambodia and Thailand have been difficult since June 2008 amid an ongoing border conflict over land surrounding an 11th century temple, which has claimed several lives. -- AFP