Fighting erupted today on the outskirts of Somalia's militant Islamic movement's last remaining stronghold as thousands fled advancing Ethiopian troops supported by tanks and MiG fighter jets.

Officials of Somalia’s Islamic courts held informal talks with an Ethiopian minister in neighbouring Djibouti during which they said that the group would only hold talks with Ethiopia once it withdraws its troops from Somalia, the group’s foreign affairs chief said today.

Somalia’s virtually powerless government and an Islamic militia that has seized control of much of southern Somalia have signed an agreement to eventually form a unified national army.