The Eritrean president, Isayas Aferwerki, has again insisted his country's army will not withdraw from border territory, which has become the subject of a fierce dispute with Ethiopia.

In a BBC interview, he described as morally unacceptable, Ethiopian demands that Eritrean troops withdraw before any peace negotiations can begin.

He said the dispute could be settled by the formation of an international body to demarcate the border.

Addis Ababa has threatened to use force unless Eritrean troops pull out of the disputed zone -- a triangle of land covering four-hundred square kilometres.

But Eritrea says its army has only retaken territory seized by Ethiopia six months ago.

Reports from Ethiopia speak of fresh clashes on Sunday; however, an Eritrean official said that while there may have been outbreaks of fighting, the situation was under control.