Australia's Department of Foreign Affairs and Trade today warned Australians not to travel to the country after five people were killed and many more injured when violence erupted during a march in the capital Dili last week.

The march was in support of nearly 600 soldiers sacked for deserting amid complaints of discrimination between those from the east and west of East Timor.

The upheaval in Asia's poorest and newest nation led to thousands fleeing their homes to seek shelter in seminaries and areas outside the capital.

Australia has three military liaison officers and four civilian police attached to the UNOTIL force.

Mr Downer, who met with East Timor's Foreign Minister Jose Ramos Horta this week, has supported the call for the UN to stay on.

"We have got to give positive consideration to extending the UN mission in East Timor," Mr Downer said today.

"I had been hoping, I must say, that it might be possible to wind it up fairly soon but in light of what's happened perhaps that would be premature."

DFAT said more violent demonstrations could occur at any time and Australians could be caught up in the unrest.

"We advise you to reconsider your need to travel to East Timor at this time because of the high level of communal tension and the potential for politically-motivated violence," the upgraded DFAT advisory said.

"The situation could change quickly and without notice and Australians could be caught up in any violence directed at others."