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Home Secretary Jacqui Smith said that extremists were behaving contrary to their faith, rather than acting in the name of Islam.

Security officials believe that directly linking terrorism to Islam is inflammatory, and risks alienating mainstream Muslim opinion. In her first major speech on radicalisation, Miss Smith repeatedly used the phrase "anti-Islamic".

She will meet members of the online industry in the next few weeks to decide how to crack down on Al Qaedainspired sites.

Illegal material will be tracked down and removed using tactics already deployed against online paedophiles.

Funding will be boosted to allow more youngsters to carry out volunteer work overseas.