New fighting and anti-Government demonstrations in Macedonia have marred optimism over a Nato-brokered deal designed to accomplish a pull-out of ethnic Albanian rebels from a strategically important suburb near the capital Skopje.

Britain today called on "restraint" from Macedonia as the Balkan republic's forces began their first serious offensive.

Macedonian troops have battled with ethnic Albanian rebels in the closest fighting since the start of the six-week conflict.

Macedonian helicopters have bombed ethnic Albanian rebels just south of Tetovo.