Australians travelling to India are being warned to be cautious amid reports of a possible terror attack in Mumbai.

The Department of Foreign Affairs and Trade updated the travel warning for India, saying they are investigating information that militants may be planning attacks against upmarket hotels in Mumbai.

"We continue to receive reports that terrorists are planning attacks in India," the government's Smart Traveller website said.

"Attacks could occur anywhere at any time with little or no warning, including in locations frequented by Australians."

Australians have been reminded to exercise a high degree of caution in India due to the high threat of terrorist activity, civil unrest, crime and the high rate of vehicle accidents.

The warning comes after Australians travelling to Indonesia were also advised to exercise a high degree of caution following US government warnings about potential terrorist attacks.

Yesterday, Foreign Minister Julie Bishop said Australians should always be cautious travelling overseas, especially as Indonesia has been an area of terrorism activity for some time.

But she said authorities were working closely with their Indonesian counterparts to prevent terrorism.

Asked if she would be happy to visit Bali at this time, foreign minister said she would.

"Australia is monitoring this situation very closely," Ms Bishop told reporters in Perth.

"We treat terrorism and our counter-terrorism activities as our highest national security priority."

In 2008, 166 people were killed and 300 injured after ten gunman carried out a massacre at hotels, a railway station, cafe and Jewish centre in Mumbai.