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Australian troops have entered the East Timorese town of Same where army fugitive Alfredo Reinado has been holed up since last week.
East Timor's President Xanana Gusmao has ordered security forces to arrest Reinado, who has been on the run since he escaped from jail in East Timor's capital Dili last August.
Reporters in Timor say the troops entered Same, about 50 kilometres from the capital Dili, at 2am AEDT.
The town is now quiet, although residents earlier reported that helicopters had been flying overhead and there were reports of some gunshots.
Reinado had earlier said he was willing to negotiate with the Government, but would not surrender to troops surrounding his hideout.
- RADIO AUSTRALIA