Media "sensationalism" is unfairly linking Islam to terrorism and inflaming tensions between Muslims and other Australians, a detailed study has found.

The first comprehensive study of community attitudes in Australia into radicalisation, written by Victoria Police and Victoria University, found most of more than 500 community leaders, government stakeholders and everyday Australians surveyed regarded the risk of terrorism as fairly low.

They were deeply critical of media sensationalism when covering the risk of terrorism, which an "overwhelming majority" said was unfairly linking it to Islam. Some respondents felt the reporting was so far slanted that they wanted greater regulation or monitoring of media organisations.

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