Prime Minister Julia Gillard told parliament on Wednesday that Australians need to exercise a high degree of caution if they travel to Delhi for the Commonwealth Games.
She urged them to read updated travel advice provided by the Department of Foreign Affairs and Trade.
"That advice states that Australians should exercise a high degree of caution in India," Ms Gillard said.
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Australian authorities continued to receive reports of possible terrorist attacks in Mumbai or Delhi and other major cities.
"The risk of a terrorist attack is high," Ms Gillard said.
"The updated advice also notes that some public places should be avoided."
Ms Gillard said she was aware of Indian media reports that two extremist groups were planning attacks on the Games.
"I have seen those reports and am advised our initial assessment is that those specific reports lack credibility."
The revised government advice has added a section on Key points from the travel advice for India.
"We continue to receive reporting that terrorists plan to attack public places, including hotels and tourist locations, in New Delhi, Mumbai and other major cities" the advice on the DFAT website reads.
"In planning your activities, consider the kind of places known to be terrorist targets and the level of security provided."
Australia's chef de Mission, Steve Moneghetti, said the updated warning fits in to the team's current policy of restricting athletes' movement to the village and venues.
"It won't change it, the village, the venues and organised places, that's not changing, that just backs up our advice."
More than 160 Australian athletes are due to arrive in Delhi on Wednesday night, swelling the number to close to 300.
