The Ministry of Foreign Affairs (MFA) here disputed remarks by Mahathir on Friday that Goh had opposed the construction of the bridge because he was nostalgic over the causeway which currently connects the neighbours.

Speaking in the state of Johor near Singapore on Friday, Mahathir claimed that Goh had blocked a plan to replace the causeway with a new span.

He said that Singapore Senior Minister Lee Kuan Yew had told him he had no objections to a new bridge, but that it was Goh who was against it.

Mahathir quoted Lee as telling him that Goh was "nostalgic about the causeway" and that the bridge could be built after the Singapore leader had retired.

"Prime Minister Mahathir is an entertaining story-teller," an MFA spokesman said in a statement.

The spokesman said the Singapore leader did not think there was a need to replace the causeway with a new bridge because it was still "serving both countries well" and that a second link was still under-utilised.

However, Goh later agreed to the building of a new bridge in the interest of concluding a package deal with Malaysia which covered the issue of water supplies.

Goh suggested that the causeway be knocked down after 2007 when the bridge shall have been completed, the spokesman said.

Malaysian and Singapore officials held two rounds of discussions in June and September 2002 related to Malaysia's technical requirements for the proposed bridge.

But Kuala Lumpur in October called off the package negotations, which also halted talks on the bridge.

The spokesman also referred to letters exchanged by officials from both nations on water supplies and other issues. The letters were made public by Singapore.

In a letter to Mahathir dated April 11, 2002, Goh said he was agreeable to the building of a new bridge.

"Once the new bridge is completed, the causeway can be knocked down, which I prefer done after 2007. But if you wish to proceed immediately to replace just your side of the causeway with a bridge, I shall accept it, though I think this is not ideal," Goh wrote.

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