Washington  - In his first address after being sworn into office on Tuesday, US President Barack Obama made it clear that he was ready to plot a new course in foreign policy by reaching out to the Muslim world and working with allies, while also saying he will not relent in the war against violent extremism.

The United States must play a rightful role in ushering in a "new era of peace" in the world, Obama said, but he warned oppressive rulers that they are on the "wrong side of history."

Millions of well-wishers attended the ceremony that ushered the first African American into the White House.

Obama intends to move quickly on the foreign policy front even as he tries to pull the country out of its worst recession in decades. He will try to end a war in Iraq he opposed from the beginning, while trying to reinvigorate the effort to defeat the Taliban in Afghanistan.

Obama has remained mostly silent on foreign policy since winning the election November 4, deferring to George W Bush's White House and ensuring Washington spoke with one voice in the world. Obama on Tuesday signalled that the United States must adopt a more multilateral approach that relies less on military power.

"Recall that earlier generations faced down fascism and communism not just with missiles and tanks, but with sturdy alliances and enduring convictions," he said. "They understood that our power alone cannot protect us, nor does it entitle us to do as we please."

Obama took a subtle swipe at his predecessor by implying the previous eight years marked a departure from traditional American values in international affairs, highlighted by abuses in Bush's war on terrorism.

"As for our common defence, we reject as false the choice between our safety and our ideals," Obama said.

Obama is expected as early as this week to order the closure of the detention centre for terrorist suspects at Guantanamo Bay, Cuba, and begin exploring ways to deal with the 250 detainees who remain at the notorious camp that has bruised America's image in the world.

The 44th president said he will step up engagement with Muslim nations to seek a "new way forward, based on mutual interest and respect" and will reach out to autocratic regimes who are willing to ease their grip on power.

"To those leaders around the globe who seek to sow conflict, or blame their society's ills on the West - know your people will judge you on what you can build, not what you destroy," he said.

"To those who cling to power through corruption and deceit and the silencing of dissent, know that you are on the wrong side of history - but that we will extend a hand if you are willing to unclench your fist," he added.

During the campaign, Obama said he was open to a higher level of dialogue and was open to meeting with the leaders of Iran or North Korea to prevent the two countries from advancing their nuclear programmes.

Obama said his administration wants to work with friends and former foes to secure nuclear stockpiles, prevent the spread of dangerous materials and curb global warming, but he adopted tough language not unlike Bush's when it comes to terrorism.

"We will not apologize for our way of life, nor will we waver in its defence," he said. "And for those who seek to advance their aims by inducing terror and slaughtering innocents, we say to you now that our spirit is stronger and cannot be broken. You cannot outlast us, and we will defeat you."

Obama will inherit an Israel-Palestinian peace process shattered by three weeks of fighting that ended with a fragile ceasefire just this past weekend. According to the Washington Post, Obama will quickly name former senator George Mitchell as special envoy to the Middle East in a move designed to quickly address the conflict.

Mitchell served as the special envoy in the Northern Ireland peace process during the 1990s, and was worked on the Israeli- Palestinian conflict.

Obama called on wealthy nations to do more to help poor, for a more responsible use of the world's resources and to become better stewards of the environment.

"The world has changed, and we must change with it," Obama said. (dpa)