A recent discovery of bird flu among some 200 poultry has dashed Malaysia´s hope of declaring the country free of the disease, the Veterinary Services Department said Tuesday.

The department had been expected to make the much-awaited announcement this week. It has been more than 21 days since the last case of the H5N1 strain of the virus was detected on Oct. 10. The 21-day period has been set as the criteria by the World Organization for Animal Health.

However, laboratory tests on poultry samples taken two weeks ago from Kampung Pulau Besar, a village in the northeastern state of Kelantan, detected the H5 virus.

Veterinary Services Department Director General Hawari Hussein said more tests need to be done to confirm whether it is the H5N1 strain of the virus that is known to infect humans.

He said some 200 birds in the village had already been culled as a precaution.

"As a result, the move to declare Kelantan totally free of the avian flu will only be made when the ongoing surveillance no longer detects any more H5 virus and clinical signs," he said in a statement.

Hawari considered the threat still high as the disease is still active in neighboring countries.

Malaysia reported its first bird-flu outbreak in mid-August following the discovery of two dead fighting cockerels in Kelantan. Authorities suspect the birds caught the virus while participating in a cockfighting competition in Thailand.

So far, the outbreak has been confined to the state.

Authorities have quarantined the entire state, setting up 24-hour roadblocks and border patrols. Over 8,000 chickens, ducks and pet birds have been culled.

No human infections have been reported so far. The deadly H5N1 strain of the bird flu has killed at least 31 people in Thailand and Vietnam.

Malaysia´s poultry industry has reported losses up to 10 million ringgit (about $2.63 million) due to the disease following import bans by Singapore and other countries.

On Sept. 30 Singapore agreed to partially lift the ban and resume importing poultry products from other Malaysia states that are free of the virus.