JAKARTA, Nov 20 (Reuters) - Bird flu has been ruled out as the cause of illness in 17 people from the same neighbourhood of Makasar in Sulawesi, Indonesia, a health ministry official said on Thursday.

The 17 were hospitalised this month after falling sick shortly after a rash of unexplained chicken deaths in the area.

"The result of the tests is negative," said Lily Sulistyowati, spokeswoman of the ministry, without giving details.

Suspected outbreaks raise concerns about rare human-to-human transmission or that the virus might have mutated into a form that can pass easily among people.

The country's largest known cluster of bird flu cases in humans occurred in May 2006 in the Karo district of North Sumatra province, when as many as seven people in an extended family died.

The World Health Organisation said at the time that limited human-to-human transmission could not be ruled out but that the virus samples from the scene did not show any significant genetic mutations.

Bird flu remains mainly an animal disease, but experts fear the H5N1 virus might mutate into a pandemic strain that would sweep the globe, possibly killing millions and hobbling economies.

Indonesia has the highest toll of any nation. Some 112 people have died because of the disease.

Last week, a health official said a 15-year-old Indonesian girl had died of bird flu in central Java, but Chandra Yoga Adhitama, acting director-general of communicable disease control, said tests showed bird flu was not responsible. (Reporting by Telly Nathalia; Editing by Sugita Katyal)

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