As political tension continues to grow, the prime minister said Mr Anwar's plans for a reform movement were aimed at distracting the public from his personal problems.

The prime minister sacked Mr Anwar over allegations of sexual misconduct, treason and other crimes, a day after the government announced sweeping currency controls to protect the country's battered economy.

Mr Anwar was also expelled from the ruling United Malays National Organisation party (UMNO).

But the ousted minister and his supporters say that the economic reformer was the victim of an intense power struggle with Mr Mahathir.

Abdullah Ahmad Badawi: "Anwar politicises his dismissal"

Supporting the Prime Minister, Foreign Minister Abdullah Ahmad Badawi said Mr Anwar was trying to ignite an uprising against the government.

He accused Mr Anwar of using his dismissal to his own political advantage.

"This is a deliberate attempt to not only get his supporters to rise up against the government but a ploy to focus public attention away from the real issue, which is his sexual behaviour," he said.

Although no formal charges have yet been brought against him, Mr Anwar has already denied the allegations.

He said he had been framed by enemies in an attempt to "assassinate" him politically - and he predicted that he may be arrested under legislation which allows detention without charge.

Party splits widen

Mr Anwar has also suggested that the government would not allow him to move freely, a charge the prime minister denies.

"He's doing his best to force the government to arrest him, then he will be a martyr," Mr Mahathir said.

Mr Mahathir was due to meet with colleagues from UMNO at its Kuala Lumpar headquarters to explain why he had sacked Mr Anwar.

Anwar Ibrahim is greeted by supporters outside his home

Mr Anwar still commands considerable support among party members and the general public.

According to local media reports, the UMNO division in Mr Anwar's home constituency, in the northern Penang state, is planning to ask its 13,000 members to petition the prime minister to reinstate Mr Anwar.

Thousands of sympathisers from many parts of Malaysia have also been flooding to his home in Kuala Lumpur to express their support.

Mr Anwar had planned to leave the capital for his home constituency, but later cancelled his trip, and has remained in his residence since his dismissal.

"My friends and supporters told me they are here and people are streaming in from all over the country," he said.