Sydney - Australia's 100,000-strong Jewish community is rated by intelligence agencies as a "category one" terrorist target, news reports Sunday said.

Stephen Rothman, president of the New South Wales Jewish Board of Deputies, told a local television station the Australian Security Intelligence Organization (ASIO) informed the community it had joined the nation's highest at-risk category.

He said 900 young Jews in Sydney and Melbourne had volunteered for training on how to guard against terrorist attacks.

Rothman said Islamic terrorist cells had been set up in Australia.

"The information that we have is that activities have occurred in Australia, which properly analyzed, can have no basis other than the operation of terrorist cells," he told Channel Seven.