An Internet statement attributed to Algeria's largest outlawed militant group, aligned with Al Qaida, said it opposed an amnesty in exchange for laying down its arms and would continue its "Jihad", or holy war.

In a September 29 referendum, Algerians approved a government offer of partial amnesty for rebels fighting for a purist Islamic state, in a bid to end more than a decade of civil war in which more than 150,000 people have died, mostly civilians.

"This vote is a waste of time. Algeria is not in need of a charter for peace and national reconciliation, but in need of a charter for Islam," said the statement on a website, dated September 27 and attributed to the leader of the Salafist Group for Preaching and Combat (GSPC).

It was the first time the GSPC had apparently commented on the controversial amnesty project, but the statement's authenticity could not be immediately verified.

The GSPC is on the US list of foreign terrorist organisations and has recently expanded its activities to neighbouring countries.

"The Jihad will go on ... we have promised God to continue the Jihad and the combat," said Abdul Malek Droukdel, also known as Abou Mossab Abdelouadoud.

The conflict began after the army in 1992 cancelled the second round of Algeria's first multi-party legislative election, which the Islamic Salvation Front (FIS) was on course to win.

The authorities estimate only a few hundred rebels are still armed and fighting security forces. Most belong to the GSPC.

At its height in the mid-1990s, up to 25,000 religious extremists were involved in the insurgency. Many have since accepted amnesties, been captured or killed.

"There will be no peace and no reconciliation as long as Islam is not taken into consideration," said Droukdel, who also praised Osama Bin Laden and his deputy in Iraq, Abu Musab Al Zarqawi.

Former influential rebel chief Madani Mezrag, who surrendered with thousands of his men in the late 1990s, has said he expected most rebels to come down from the mountains. Some diehard leaders are not expected to surrender.