Andrew Harding reports from Moscow

"Despite the most determined efforts of Russia, the military action of Nato against Yugoslavia continues to expand. The escalation is fraught with a big danger not only for the Europeans. That cannot be allowed", President Yeltsin said on Russian state-run ORT television.

President Yeltsin said he had urged his Foreign Minister Igor Ivanov to arrange a G8 meeting.

He urged the international community to act immediately to prevent the conflict developing into a war.

"Every wasted day leads to new losses and new tragedies," he said.

"The situation threatens to degenerate into a big calamity, and not just in Europe," President Yeltsin added.

Russian-brokered offer rejected

On Wednesday, the Yugoslavian President Slobodan Milosevic made a conditional offer to withdraw some forces from Kosovo if Nato halts air strikes.

Western leaders rejected the proposal, brokered by Russian Prime Minister Yevgeny Primakov, as "unacceptable".

But according President Yetsin, Mr Primakov became convinced of the possibility of a negotiated solution during his talks with President Milosevic.

"We can and must resolve the Kosovo conflict around the negotiating table," President Yeltsin said.

Presdent Yeltsin's address came after eight nights of Nato air strikes against Serbia.

Nato is attempting to force President Milosevic to halt an offensive against Kosovo Albanians which has triggered a refugee exodus.

Russia has consistently opposed the strikes and bomb attacks against its ally, Serbia.

In the past Russia has often been called upon to use its influence in Belgrade to persuade President Slobodan Milosevic to seek a compromise.