Sheikh Aweys has twice fought against Ethiopia |
Sheikh Hassan Dahir Aweys called for talks on Ethiopia's Ogaden region, inhabited by ethnic Somalis.
Mr Aweys has been confirmed as the leader of the Islamists' council.
His accusation comes after Ethiopia tightened security along the Somali border, following the advance of Union of Islamic Courts.
Mr Aweys fought in the two countries' war for the region in the 1970s.
Ethiopia also played a key role in defeating his Islamist militia al-Itihaad al-Islamiya in the 1990s.
Ethiopian prime minister
Mr Aweys is on a US list of people allegedly linked to terrorist groups and both the United States and Ethiopia have been alarmed by the Islamic courts capture of the Somali capital, Mogadishu, and other towns.
He denies the charges but the US has said it will not deal with him.
At an African Union meeting in The Gambia, the weak interim government has asked for the AU's support.
Foreign Minister Abdullahi Sheekh Ismail also condemned said Mr Aweys could not be Somalia's leader.
"He's identified with international terrorist organisations," Mr Ismail told the BBC.
"He cannot be an image representing Somalia in any case. I think everybody knows that."
Arms embargo
In Mogadishu, Union of Islamic Courts chairman Sheikh Sharif Sheikh Ahmed confirmed that Mr Aweys was the leader of a new 91-member Shura or consultative council.
It is not clear whether Mr Ahmed or Mr Aweys is the Islamists' overall leader.
The US House of Representatives is due to discuss what it calls "The Expanding Crisis in the Horn of Africa" later on Thursday.
Mr Aweys' latest comments are likely to further heighten tensions.
"Ethiopia mistreats the Somalis under their administration. The land was given to them by colonialists and we will seek justice to resolve the crisis that is dividing the two countries," Mr Aweys told the AFP news agency.
"We are ready to negotiate," he said.
The Islamists have accused Ethiopia of sending troops into Somalia in support of the weak interim government, based in Baidoa, 200km from Mogadishu.
Ethiopia's Prime Minister Meles Zenawi denies these accusations.
"We have beefed up our defences all along the border to prevent any threat to our security that might emanate from the resurgent Jihadists in Mogadishu," he said.
Ethiopia helped Somalia's now interim president, Abdullahi Yusuf, defeat al-Itihaad in the 1990s.
Last week, the Islamic courts and the largely toothless interim government agreed not to fight each other.
The recent advances of the Islamists have renewed fears of major conflict in Somalia, which has not had an effective national government for 15 years.
Meanwhile, the African Union is to ask the United Nations Security Council to partially lift its arms embargo on Somalia to allow for an African peacekeeping mission to go there.
Somalia's president is in favour of the deployment of peacekeepers, but the Islamists strongly oppose the move.
BBC News
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