Thailand is furious at the decision to appoint former prime minister Thaksin Shinawatra as an advisor to the Cambodian government.

The Thai government has recalled its ambassador from Phnom Penh in protest. Aid to the neighbouring country has also been halted.

The former Thai prime minister was appointed personal advisor of Cambodian Prime Minister Hun Sen and financial advisor to the government on Wednesday.

Bangkok has called the appointment a political decision. Mr Thaksin still wields huge influence in his country. He was toppled from power in 2006 and is living abroad to avoid a two-year jail prison sentence for corruption. The current Thai leaders ousted his allies from power in 2008.

The Thai government believe he is behind the so-called 'red shirt' movement, which wants to get rid of Prime Minister Abhisit Vejjajiva's government.

The appointment has worsened the already poor relations between the two countries. Thailand and Cambodia are also embroiled in a border dispute involving an 11th century temple.

Photo: Thaksin Shinawatra - Wikipedia