Around 700 people have been killed by the tsunami occurred on Sunday morning, the Thai Prime Minister Thaksin Shinawatra said on Monday.

Between 600 to 700 people have been killed by strong waves hitting the country's southwest coast area, the prime minister said after an emergency meeting held in the heavily-hit resort island of Phuket.

"I have asked the army to prepare 1,000 body bags," he told reporters.

Thaksin, however, didn't give specific casualties caused by thetsunami triggered out by an earthquake in the sea close to northeastern Indonesia on Sunday morning.

Thailand's Public Health Ministry on Monday morning confirmed that 392 people have died in the disaster, which was the worst in 40 years.

Local media also quoted rescue workers as saying that around 300 people have probably died in the isolated resort island of PhiPhi.

The Thai navy has sent warships and helicopters to rescue people trapped on the island and searched for those reportedly missing.

Many of the dead and missing are foreign tourists spending their Christmas vacation in Thailand's southwestern coast famous for idyllic scenery.