North Korean Leader Kim Jong-Il has attended a rare second annual session of parliament at which Mr Kim's brother-in-law was promoted and the country's prime minister was sacked, state media reported.

At Mr Kim's proposal, Jang Song-Thaek became vice-chairman of the National Defence Commission, the country's top decision-making body chaired by Mr Kim himself, the official Korean Central News Agency (KCNA) said.

His promotion may suggest that Mr Kim, 68, is moving forward with efforts to transfer power to his third son, Kim Jong-Un.

Mr Jang is close to Kim Jong-Un and seen as likely to act as "regent" when the youngest son takes the reins.

Former premier Kim Yong-Il, who is unrelated to the leader, was replaced by Choe Yong-Rim who heads the Pyongyang branch of the ruling communist party.

Mr Jang, the husband of Mr Kim's sister Kim Kyong-Hui, has assumed an increasingly key role in recent years.

After Kim Jong-Il suffered a stroke in August 2008, Mr Jang was said by some analysts to be effectively standing in for the leader.

KCNA in a brief report said legislators discussed the recall of the prime minister and his replacement and "organisational matters".

In addition to the premier, it said, three vice-premiers were sacked along with the three ministers in charge of light industry, food supply and physical culture and sports.

The new premier, Mr Choe, gave a speech at a mass rally on May 30, at which up to 100,000 people reportedly denounced South Korea and the United States for blaming Pyongyang for the sinking of one of Seoul's warships.

South Korea has asked the United Nations Security Council to censure the North for the sinking that killed 46 sailors in March, after a multinational investigation team reported that the ship was hit by a North Korean torpedo.

The North has furiously denied involvement and threatened war in response to Seoul's announced reprisals.

Mr Kim was absent from the last session of the 687-member rubber-stamp Supreme People's Assembly on April 9. That session focused on ways to revive the ailing economy.

Monday's meeting marked the first time since 2003 that two sessions of parliament have been held in one year.

- AFP