The bomb, hidden in the front basket of a motorcycle, exploded near the shrine in Pattani province's Saiburi district as ethnic Chinese in the area prepared to celebrate the Lunar New Year, which begins on Thursday, army spokesman Col. Akara Thiprote said.

The soldier who died was part of a unit on duty to ensure security during the festive period in the insurgency-wracked area.

Four other soldiers and two Muslim civilians who own shops in the area were wounded, Mr Akara said.

'They wanted to target the security force, knowing that they would be sent to check the area before the celebration kicks off,' Mr Akara said.

He said the attack was part of the insurgents' strategy to scare non-Islamic residents from the area.

Analysts believe the ultimate goal of the insurgents is to create a separate Islamic state out of Thailand's three southernmost provinces, the only ones with Muslim majorities in the predominantly Buddhist country.

Last year, there were 29 bombings and 20 arson and shooting attacks in the three provinces on the eve of the Lunar New Year.

The insurgency has taken the lives of more than 2,900 people since erupting in January 2004.

Little progress has been made in curbing the violence despite the presence of nearly 40,000 police and soldiers, as well as several changes of military leadership and strategy.

Many southern Muslims feel unfairly treated by the country's Buddhist majority, and their discontent has fueled separatist movements since Thailand annexed the area a century ago. -- AP