Fresh ceasefire agreed in Macedonia

The roads out of Tetovo are crowded with refugees

The two sides in the Macedonian conflict have reached an agreement aimed at ending recent heavy fighting around the northern city of Tetovo, according to diplomatic sources.

Ethnic Albanian rebels have agreed to pull back from "certain areas" they have taken around the town, while government forces have agreed to exercise restraint, the reports say.

Any efforts to resolve the situation militarily can only result in the wreckage of the country

Lord Robertson

The agreement, which was won by Nato special envoy Peter Feith, comes amid a deteriorating atmosphere of violence and mutual recrimination between the two sides.

A BBC correspondent in the capital, Skopje, says the Nato-brokered deal appears to be a positive sign ahead of a visit to Macedonia by Nato Secretary-General George Robertson and EU foreign policy chief Javier Solana on Thursday.

Tensions rose again on Wednesday after the Macedonian Government renewed its threat to mount an all-out military assault on rebel positions.

It is impossible to pull back because Macedonian paramilitaries are too close

Rebel commander

In an earlier statement, Lord Robertson warned: "Any efforts to resolve the situation militarily can only result in the wreckage of the country and the inflicting of grave civilian casualties."

But despite the apparent renewal of the truce, a rebel commander near Tetovo warned that his forces may not be able to respect the ceasefire.

Commandant Leka, a 35-year-old veteran of campaigns in neighbouring Kosovo, said his men had moved into nearby villages to protect ethnic Albanians because Macedonian residents had been given guns.

Panic

The rebel pull-out from around Tetovo and parts of a road leading to the town of Jazince is due to start at 0400 GMT on Thursday.

A ceasefire was shattered on Sunday night by fighting in Tetevo, which government officials said caused thousands of civilians to flee their homes.

But the government warning of a renewed military campaign has apparently prompted thousands more people in a wider area to leave their homes.

Roads out of Tetovo are reportedly jammed with scores of cars and buses packed with people and their hastily packed belongings heading for the capital, Skopje.

Dangerous mood

The renewed fighting and skirmishes in and around Tetovo have inflamed the already dangerous mood in the country.

Protesters in Skopje attacked UN property

Tensions boiled over into rioting in Skopje on Tuesday after an angry demonstration in which protesters accused Nato and international mediators of supporting the rebels.

For their part, Western diplomats are thought to be increasingly frustrated by hard-liners in the Macedonian Government stopping the peace process moving forward.

In an attempt to redress the balance, President Boris Trajkovski issued a conciliatory statement on Wednesday, saying peace was only possible "in partnership with the international community".