By Belgrade correspondent Jacky Rowland

Opposition leaders in Serbia have alleged that the killing of the paramilitary leader Zeljko Raznjatovic, better known as Arkan, was an act of state terrorism.

There has been no word as to the identity of the assailants who apparently escaped into the night.

There is no shortage of people who would have wanted Arkan dead and speculation is rife in Belgrade about who ordered the killing.

Earlier suspicions that this was a gangland murder, the settling of scores by one of Arkan's underworld rivals have given way to speculation that the killing may have been officially sanctioned.

Government connection?

A statement from the opposition leader, Vuk Draskovic, said the shooting provided confirmation that state terrorism existed in Serbia.

Such brutal liquidations, he said, were intended to spread fear and insecurity among the people.

Mr Draskovic maintains he was the target of a state-ordered assassination attempt in October last year.

Speculation has been fuelled by the silence so far on the part of the authorities who have not made any comment on the killing.

The only official statement was a tersely worded report by the investigating judge, identifying the victims as Arkan and two of his associates.

A spokesman for the Muslim leadership in Bosnia speculated that Arkan may have had important evidence linking President Slobodan Milosevic to war crimes.

This is one explanation for his death. Arkan knew too much and one day might have talked.