Rebels loyal to the ousted military regime in Sierra Leone have attacked the town of Waterloo about thirty kilometres from the capital, Freetown.

Witnesses say the rebels moved into the town on Tuesday before later withdrawing.Correspondents say this is the closest the rebels have come to Freetown and it will be a serious morale blow to the elected government, which had hoped to defeat the rebel threat swiftly.

The rebels say their latest offensive is aimed at trying to force the government of President Ahmad Tejan Kabban to the negotiating table.

The government says it will only talk to the rebels if they lay down their arms.