A warning issued by the US embassy in Indonesia of a possible New Year terrorist attack on Bali has been called into question by the island's governor.

The embassy published the online warning based on statements made by Bali's governor. However, the governor and his staff deny making a specific warning and say they have only advised visitors to be on their guard.

Western tourists flock to Bali to celebrate New Year. On 1 January 2002, a bomb attack on Bali killed 202 people, many of them foreign tourists. A further attack on Bali's tourist sector in 2005 claimed 20 lives.