Britain on Wednesday launched a � 5-million fund to fight Muslim extremism at the community level, calling efforts to contain rising fundamentalism among minority communities as a battle for hearts and minds.

The funds will be available to town halls and local councils would bid for the money to fund initiatives aimed at stopping the grooming of young Islamists, Communities Secretary Ruth Kelly said.

"This new, more local approach will help reach directly into communities to support the law-abiding majority in tackling the false and pernicious ideology spread by extremists," Kelly was quoted as saying by The Guardian.

"The battle for hearts and minds is more important than ever, as is the need for closer working together."

Around 50 local authorities -- mainly in Britain's major cities -- are working with local Muslim communities to devise new approaches to be funded by the scheme, the report said.

Prime Minister Tony Blair had yesterday called for a "radical and head-on" confrontation with Islamic extremism.