Mr Rasmussen again apologised for any offence but insisted his government was not responsible for newspaper articles.
The cartoons, first seen in a Danish paper, have sparked violent protests and boycotts across the Muslim world.
Editors of a Jordanian and a French newspaper who chose to republish the cartoons have been dismissed.
One of the cartoons shows the Prophet wearing a headdress shaped like a bomb, while another shows him saying that paradise is running short of virgins for suicide bombers.
Islamic tradition bans depictions of the Prophet or Allah.
Ambassadors summoned
In an interview with the Dubai-based al-Arabiya channel, Mr Rasmussen called on all parties to avoid escalating the row.
We fought for freedom of religion... France Soir's owner should be ashamed
Marcel de Vries, Netherlands
Freedom of speech has its limits when it concerns others... How would it feel if Jesus Christ was the one insulted instead?
Randa Ahmed Essa, Egypt
"I have sent a very strong appeal to everyone in Denmark that though this dispute may raise many strong feelings, everybody should take the responsibility to ensure peaceful co-operation in Denmark," he said.
Mr Rasmussen said the issue has gone beyond Denmark to become a clash between Western free speech and Islamic taboos.
Denmark has summoned ambassadors in Copenhagen to talks on the row on Friday. Syria and Saudi Arabia have already withdrawn their envoys.
Danish companies are already feeling the pinch of Muslim boycotts. Dairy firm Arla Foods said on Thursday it was laying off 125 staff in Denmark.
Although the cartoons originated in Denmark's Jyllands-Posten paper, they have been reprinted in newspapers in Germany, Italy, the Netherlands and Spain - all saying they were expressing free speech.
CARTOON ROW
30 Sept: Danish paper Jyllands-Posten publishes cartoons
20 Oct: Muslim ambassadors in Denmark complain to Danish PM
10 Jan: Norwegian publication reprints cartoons
26 Jan: Saudi Arabia recalls its ambassador
30 Jan: Gunmen raid EU's Gaza office demanding apology
31 Jan: Danish paper apologises
1 Feb: Papers in France, Germany, Italy and Spain reprint cartoons
In Jordan, an independent tabloid, al-Shihan, reprinted three of the cartoons on Thursday, saying people should know what they were protesting about.
In a separate article, the newspaper's editor, Jihad Momani, urged the world's Muslims to "be reasonable" in their response to the drawings.
The paper's publishers sacked him hours later over the "shock" he had caused, Jordan's official Petra news agency reported.
There has been widespread anger over the cartoons among Muslim nations and communities.
Norway closed its mission to the public in the West Bank in response to threats from two militant groups against Norwegians, Danes and French people.
Egyptian President Hosni Mubarak warned that the decision to publish the cartoons could encourage terrorists.
Afghan President Hamid Karzai strongly condemned their publication, saying it was "an affront... for hundreds of millions of people".
Hundreds of students demonstrated in the Pakistani cities of Lahore and Multan, burning flags and effigies of the Danish prime minister.
EU Trade Commissioner Peter Mandelson also criticised the European papers which re-ran the cartoons, saying they were "throwing petrol onto the flames of the original issue and the original offence that was taken".
Bomb threat
The row intensified on Wednesday when France Soir, alongside the 12 original cartoons, printed a new drawing on its front page showing Buddhist, Jewish, Muslim and Christian holy figures sitting on a cloud, with the caption "Don't worry Muhammad, we've all been caricatured here."
MUSLIM CONCERNS OVER ART
1989: Iranian spiritual leader Ayatollah Khomeini calls on Muslims to kill British author Salman Rushdie for alleged blasphemy in his book The Satanic Verses
2002: Nigerian journalist Isioma Daniel's article about Prophet and Miss World contestants sparks deadly riots
2004: Dutch film maker Theo van Gogh killed after release of his documentary about violence against Muslim women
2005: London's Tate Britain museum cancels plans to display sculpture by John Latham for fear of offending Muslims after July bombings
France Soir's editor, Jacques Lefranc, was dismissed by the paper's French-Egyptian owner after the decision to publish the cartoons.
But journalists at France Soir stood by their editor's decision on Thursday, printing a front page picture and editorial in which they strongly defended the right to free speech.
The man named to replace Mr Lefranc in an interim role, Eric Fauveau, said he would not take up the post. Mr Fauveau called the dismissal of Mr Lefranc "inopportune".
Jyllands-Posten has apologised for causing offence to Muslims, although it maintains it was legal under Danish law to print the cartoons.
Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/europe/4675462.stm
Published: 2006/02/02 22:05:04 GMT
As the row intensifies, governments and world leaders have been giving their reaction. Here is a selection of comments from political leaders around the world. It is pertinent to note that Bush has done well to bite his tongue on his issue as if he opens his big mouth, Bush being Bush will only say something stupid as he is wont to do.
UK Muslims voice cartoons concern
UK Muslims have reacted with concern to the reproduction of cartoons of the Prophet Muhammad by European papers. The Muslim Association of Britain accused the Danish paper which first carried them of "flagrant disregard" for the feelings of Muslims worldwide.
It said other papers would have been "prudent" not to "exacerbate" tensions by reprinting them and urged the British media not to follow suit.
The BBC aired "glimpses" of the images, which it said it used "responsibly".
EU offices threatened
The cartoons, including one depicting Muhammad with a turban-shaped bomb on his head, have sparked protests across the Middle East.
The editor of the Danish paper which first carried them has apologized but newspapers in Spain, Italy, Germany and France have reprinted the material in a show of support.
"You cannot reproduce these images in a sensitive manner"
Muslim Association of Britain
Earlier, Palestinian gunmen briefly surrounded EU offices in Gaza to demand an apology over the cartoons.
The Muslim Association of Britain condemned any acts or threats of violence by those on either side of the row.
But it said any reproduction of the images by the British media would "only infuriate the British members of the Muslim community and Muslims around the world".
A spokesman added: "It will be insult to injury. You cannot reproduce these images in a sensitive manner."
A spokesman for the BBC said it had decided to show the images in full context to "give audiences an understanding of the strong feelings evoked by the story".
"We are only showing these within the context of full reports of the debate," a spokesman said.
'Gloating about freedom'
The Muslim Council of Britain said its reaction to the BBC decision would depend on the context in which it used the images.
A spokesman said: "It depends on whether they're broadcast to illustrate the story about the row developing or, in the same way as the European newspapers have published, to gloat about freedom.
"We recognise that the newspapers have full freedom. However we hope that they would be able to show restraint when it comes to these images because of the enormous hurt it would cause to Muslims."
"I would urge all sides now to climb down and treat this as a hard lesson in building inter-cultural ties"
Sajjad Karim
Liberal Democrat MEP Sajjad Karim, who represents north-west England in the European Parliament, said it was irresponsible for papers to publish the cartoons.
But it was also irresponsible for Muslims to threaten to retaliate against citizens of the countries where the newspapers were published and it was now time to "put the issue to bed".
He said: "I would urge all sides now to climb down and treat this as a hard lesson in building inter-cultural ties."
European Trade Commissioner Peter Mandelson earlier condemned those newspapers which re-printed the cartoons, accusing them of throwing "petrol on to the flames".
He told the BBC: "I can understand the motivation at one level of these newspapers. They are, as they would see it, standing up for freedom of speech.
'Kid gloves'
"What they also have to understand though is the offence that is caused by publishing cartoons of this nature."
A spokesman for Prime Minister Tony Blair said whether British media organisations decided to carry the images was a matter for them to decide.
He said: "In this country there are ways in which the media reach their judgments and they know they have to do so within the law. "It would be entirely wrong for the government to... dictate in advance what media organisations can or cannot do."
Former Spectator editor and Conservative MP Boris Johnson told the BBC the Muslim religion should not be treated with kid gloves.
He said: "If you are a Muslim and your faith is strong and you believe in God and in your prophet then I don't think you should be remotely frightened of what some ludicrous infidel says or does about your religion or any depiction he produces.
"I think we've got to move away from this hysterical and rather patronising idea that we have got to treat the Muslim religion with kid gloves and not subject it to all the same rough and tumble that we subject other faiths to."
Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/uk_news/4675534.stm
Published: 2006/02/02 22:13:07 GMT
Copyright BBC MMVI
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