Malaysia is opposing Indonesian terrorist Hambali's plea to be released from the US-run detention facility on Guantanamo Bay, Cuba, where he has been held for more than a decade.
Hambali, whose real name is Riduan Isamuddin, masterminded the deadly bombing in the Indonesian resort island of Bali in 2002 which killed more than 200 people. He was arrested in Thailand in 2003.
The military leader of the al-Qaeda-linked Jemaah Islamiyah terrorist group, Hambali is one of 61 detainees still being held at Guantanamo.
News reports said he appeared before the prison's periodic review board last week where he pleaded for his release.
Malaysian Deputy Home Affairs Minister Nur Jazlan Mohamed said that Hambali may still have a strong influence some Jemaah Islamiyah militants in Indonesia and Malaysia.
"The group may still have followers and may be waiting for Hambali's release to revive the movement," he told reporters in the southern state of Johor.
"If freed from prison, his presence could breathe new life to terrorism in the region," he added.
Although Hambali is Indonesian, he lived in Malaysia for nearly two decades and was involved in the setting up of Jemaah Islamiyah camps in the country, the minister said.