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Myanmar's leader Aung San Suu Kyi has disclosed that plans are in motion to set up a civilian-led agency with foreign aid to deliver aid and help resettle Rohingya Muslims in Rakhine state.

A close adviser, speaking with Aung San Suu Kyi's knowledge, said the proposed body had been long planned, and was part of an attempt to show the civilian government she leads, rather than the Burmese military, can deliver humanitarian relief, resettlement and economic recovery.

Aung San Suu Kyi who is a Nobel Peace Prize winner has been widely criticised for not doing enough in the ongoing Rohingya crisis in Myanmar that has seen over 500,000 refugees cross over into Bangladesh.

"She is appalled by what she has seen. She does care deeply about this. I know that does not always come across. But she really does," said the adviser, who asked not to be named. "What was not clear to her [before now] was how to fix it, and how to give the civilian government the powers it needed".

In a speech carried by state TV late on Thursday, Aung San Suu Kyi said: "There has been a lot of criticisms against our country. We need to understand international opinion. However, just as no one can fully understand the situation of our country the way we do, no one can desire peace and development for our country more than us."

In her new proposal, she said she was setting up a new body to deliver relief and resettlement on the ground, as well as implement projects in all sectors of the region.

"It is going to be an implementation unit and will introduce a degree of transparency into the government that will allow the international community to participate and provide aid", the adviser added.

"She has put herself front and centre of this and said ‘I will lead this' ". The adviser added: "She is someone who through her whole life has been committed to the values of human rights. That has not gone away, but she is very focused on fixing the problem, rather than identifying it.

"She recognises there have been particular tragedies amongst the Muslim communities, and amongst other small minority groups. But, yes, she does see this latest and most dreadful upsurge of violence as stemming from carefully timed political attacks on police stations".