The talks, arranged by the Organisation of African Unity, are designed to draw up proposals for ending the dispute and follow visits to both countries by OAU officials last month.

The Ethiopian foreign minister Seyoun Mesfin and his opposite number from Eritrea, Haile Weldensae, arrived in Burkina Faso on the same plane, but were taken to different hotels in the capital, Ougadougou.

They attended separate talks with the OAU contact group.

Ethiopia has insisted that Eritrea withdraw from disputed territory before the two sides hold face-to-face talks.

However, the Eritreans say they will not withdraw because they have not occupied any Ethiopian territory.

Between May 6 and June 11, hundreds of people were killed in clashes between the two countries, who were former allies during the war which overthrew Ethiopia's communist rulers.

All quiet on the frontline

There have been no reports of fighting in the disputed territories of Badme and Sheraro since June.

OAU Chairman and Burkina Faso President Blaise Campaore, Zimbabwe's President Robert Mugabe and Djibouti's representative, Mohamed Moussa Chehein, are expected to attend the talks.

Mr Waldensae said: "We are ready for an immediate and unconditional ceasefire and unconditional talks. We are not interested in war. We think that a border dispute should not have gone to war."

Israel said on Friday it would delay upgrading Ethiopian fighter jets to avoid influencing the outcome of the negotiations.