"The H5N1 virus was found in chickens in a local farm," Charal Trinvuthipong, assistant to the agricultural minister, told AFP.

The outbreak at a farm in Nakhon Phanom province, 740km northeast of Bangkok, follows the death on Wednesday of a boy from bird flu -- Thailand's first such death in seven months.

"It is the second outbreak (this year) following the one in Phichit province," Charal added.

He said more than one hundred volunteers had been deployed to cull about 300,000 chickens near the affected area.

Authorities earlier threatened people with a 2,000 baht (52 dollar) fine for failing to report any sick or dead poultry.

Agriculture ministry officials said the measures, due to be officially announced Monday, would be enforced across the country.

"People will be guilty if they fail to report sick and dead poultry, with a maximum fine of 2,000 baht," an official told AFP, adding that the measures would come under existing legislation to counter animal-linked epidemics.

Health authorities have been on high alert since Wednesday's death. The victim, a 17-year-old boy, caught the virus from one of his fighting cocks in northern Thailand. He had not reported the death of his bird because he feared the rest would be culled.

Authorities moved quickly to contain the outbreak, banning all movement of poultry in Phichit province and deploying 20 veterinarians from Bangkok. Seven other provinces were put on high alert.

No further human cases have been reported but 88 people with flu-like symptoms from 14 provinces are currently under observation pending the results of blood tests, the health ministry said.

Officials have insisted that the latest death will not derail Thailand's plans to eradicate the disease within three years, which the government believes is essential to shore up confidence in its poultry industry.