Bali bombings mastermind confirmed killed

This image grab taken from Indonesian Metro TV shows the body of a slain man, revealed to be Dulmatin.

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Indonesian President Susilo Bambang Yudhoyono has confirmed that Dulmatin, a mastermind of the Bali bombings, has been killed in a police raid near Jakarta.

Dr Yudhoyono made the announcement during his speech to an official luncheon in his honour at Parliament House in Canberra on Wednesday.

"I have great news to announce to you," he said.

"After a successful police raid against a terrorist hiding out in Jakarta ... we can confirm that one of those killed was Mr Dulmatin, one of the top South-East Asian terrorists that we've been looking for."

Police believed those targeted in the raid were providing an alleged terrorist cell in Aceh with weapons, ammunition and funds.

Dulmatin, an Indonesian national, is an explosives expert who is believed to have assembled the bombs that were detonated inside Paddy's Bar and the Sari Club in Bali and set off one of them with a mobile phone.

Among the 202 people killed were three New Zealanders and 88 Australians.

Dulmatin was long thought to be in hiding in the southern Philippines; two previous reports of his demise have proved to be false.

The emergence of the suspected terrorist cell in Aceh comes ahead of the planned visit to Indonesia of US President Barack Obama at the end of next week.

A large training camp was uncovered in the mountainous jungles of Aceh.

- AAP and The Age