Caretaker Prime Minister Thaksin Shinawatra declared state of emergency in Bangkok and transferred Army Commander in Chief Sondhi Bunyaglarin to PM's Office.
Speaking from New York in Channel 9, Thaksin ordered Sondhi to report himself with Deputy Prime Minister Pol Gen Chidchai Wannasathit immediately.
Thaksin said he decided to declare the state of emergency because the situations were not stable.
His orders came after reports that Gen Sondhi was trying to stage a coup d'etat.
Tanks and army humvees were seen on Bangkok streets.
Earlier Channel 9 and 5 have been ordered to stand by for special announcement as coup speculation reached the highest pitch.
Coup was widely speculated after many army units were moved out of their barracks on pretext of personnel rotation.
Sources said Channel 5 would broadcast an announcement by the military at 10 pm while Channel 9 may broadcast announcement of caretaker Prime Minister Thaksin Shinawatra from New York.
Channel 5 is playing songs in praising of His Majesty the King in an indication that an announcement may be made soon.
At 10:26 pm, all TV stations are laying march music in praise of His Majesty the King as if the stations are now under control of one group.
Earlier, the day an army source said Army Commander-in-Chief has instructed all army units in Bangkok to standby for an important event.
Thaksin declares state of emergency in Bangkok
Thaksin declares state of emergency in Bangkok
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