Indonesian police believe they foiled another terrorist attack when they surrounded and killed a key player in one of the country's most dangerous militant networks on Wednesday. In the house where Azahari Husin had been hiding, the police found a number of bombs, and in another house, evidence that the same group was responsible for last month's bombings on the holiday island of Bali.

Police say they tracked down Azahari Husin by following one of his bomb making pupils, who was delivering a completed bomb to one of his accomplices. Although the young man realized he was being tailed and tried to escape, he was captured.

He led them to two safe houses, one in the town of Batu, where Husin was staying, and the other in Semarang, where the group's main recruiter and ideologue, Noordin Mohammed Top, was staying.

Police say Top managed to escape, but he left behind identity cards belonging to the three men who launched suicide attacks on restaurants in Bali last month. He also left videos in which the bombers said they were doing a noble thing, and would go to heaven.

Police have also revealed that they recovered two completed bombs, along with more than 30 containers of electrical components to be used in making fuses, from the house in Batu where Azahari Husin was killed.

Indonesia's police chief, General Sutanto, says that although the police are grateful they have stopped Azahari Husin, Noordin Mohammed Top is still at large and people should remain vigilant.

The last two days have brought greater success for the Indonesian anti-terror squad than the preceding 10 months. They caused major disruption to a militant cell with a proven record of attacking targets, seizing complete and partially compete bombs. They say they have also recovered large amounts of material, including computer hard drives, which could lead to further unraveling of the network.