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ROME - Italy's Prime Minister Mario Monti on Wednesday warned India on the risk of escalating diplomatic crisis over the jailing of two Italian marines accused of killing two Indian fishermen.

In a telephone conversation with his Indian counterpart Manmohan Singh, Monti stressed "the alleged incident, the dynamics of which are yet to be established, occurred in international waters thus jurisdiction over the case is only Italian," according to a statement issued by the Italian government.

As the two marines engaged in a legitimate international mission of piracy fighting, they deserve an adequate treatment for their status, Monti said.

On the same day, Italy's President Giorgio Napolitano said a "very tough and reserved" political and diplomatic action in conjunction with a cautious legal intervention is the only way to bring home the two military.

"Any rift in the friendship and bilateral respect with India must be avoided on the political and diplomatic levels," he was quoted as saying by Rai state television.

The diplomatic row between the two countries escalated on Monday when the two Italians -- Massimiliano Latorre and Salvatore Girone -- were transferred from a police-guarded guest house to a prison in the southern Indian city of Thiruvananthapuram.

They have been detained since they were arrested on February 15 with charges of shooting dead two Indian fishermen whom they allegedly mistook for pirates off the coast of the southern Indian state Kerala.

Italy insisted the two marines fired warning shots from the Italian merchant ship they were accompanying, the Enrica Lexie, following the proper international procedures for dealing with pirate attacks frequent in that area, while according to Indian authorities the two failed to show sufficient restraint by opening fire.

The European Union (EU) reportedly said on Wednesday it was following closely the case seeking a resolution to the dispute.

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