The United States has offered a $10 million reward for the capture of the founder of the Pakistanbased Islamist militant group blamed for the 2008 terror attacks in Mumbai.

The bounty for Hafiz Mohammad Saeed, the founder of Lashkar-e-Taiba

(LeT) who makes frequent public appearances in Pakistan, was announced by US Undersecretary of State Wendy Sherman in India on Monday and posted on the US government's Rewards for Justice website, our correspondent from New Delhi said.

The only higher reward currently offered by the US government is the $25 million for al-Qaeda leader Ayman al-Zawahiri.

Washington also posted a $3 million reward for Hafiz Abdul Rahman Makki, described as LeT's second-in-command.

The move triggered an angry reply from the LeT founder.

"We are not hiding in caves for bounties to be set on finding us. I think the US is frustrated because we are taking out countrywide pro-tests against the resumption of Nato supplies and drone strikes," he was quoted as saying by Al-Jazeera news channel.

He added, "I believe either the US has very little knowledge and is basing its decisions on wrong information being provided by India or they are just frustrated".

Saeed is head of the banned charity Jamaat-ud-Dawa, seen as a front for LeT.

The Rewards for Justice notice said Saeed was "suspected of masterminding numerous terrorist attacks, including the 2008 Mumbai attacks, which resulted in the deaths of 166 people, including six American citizens".

The government in New Delhi welcomed the announcement, saying it reflected the commitment of India and the United States to bring the perpetrators of the Mumbai attacks to justice.

"It also sends a strong signal to LeT, as also its members and patrons, that the international community remains united in combating terrorism," the Indian foreign ministry said in a statement.