The Australian Intelligence Service has warned of the threat of neo-Nazi groups undermining the country's security. Australian intelligence director Mike Burgess said small cells of right-wing extremists regularly held meetings saluting in front of the Nazi flag and sharing their ideology.

In a rare public address, Burgess warns that the threat is real and growing.

"In the suburbs of Australia, small cells regularly meet to salute the Nazi flags, control weapons and train in combat, spreading their hatred of ideology," the Australian intelligence chief said.

He also said that the threat of foreign espionage is now even greater than in the Cold War period. According to him, a foreign agent was installed in Australia and spied on for many years.

"After a long standstill, the agent began sharing information with his superiors causing problems for dissidents from foreign countries before it was finally discovered," Burges said, without specifying which country has sent the agent.